Investment Info:
Single-family residence buy & hold investment.
Purchase price: $121,500
Cash invested: $121,500
Purchased a 2+2. Loan fell out at last minute and house appraised for $134,000. Rather than let the deal fail, I used my cash to pay a portion of the house, took out a car loan and a personal loan. My interest rates are better and the house will mostly be paid off in 5 years! I have 100% equity now. It was a bit chaotic until I got the loans but I'm fine with how it turned out! My rental income is the same as my loan bills. Technical math: $75,000 in loans for this house.
What made you interested in investing in this type of deal?
I had some cash set aside but it wasn't enough to afford to buy my own home so I bought one in a place I could afford.
How did you find this deal and how did you negotiate it?
I had a local realtor, who was also an nationwide investment realtor, find the city and connect me to a local realtor. She found the house on the MLS. I offered $500 over asking at $125,500 but when the loan fell through, I switched to cash and it was reduced to $121,500.
How did you finance this deal?
Cash, car loan, personal loan.
How did you add value to the deal?
?
What was the outcome?
See above.
Lessons learned? Challenges?
I didn't know what to do but I figured it out and I'm so glad I made it work, despite the chaos. I will now have a house that is almost completely paid for in 5 years (unless I 1031 or something else with it).
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Loved my agent. She was so thorough in showing me everything about every house.
