Investment Info:
Single-family residence buy & hold investment in West Babylon.
Purchase price: $318,000
Cash invested: $30,000
Purchased a personal property and currently "house hacking" to build capital for future deals.
What made you interested in investing in this type of deal?
This type of deal is a deal that is expediting financial freedom. The ability to have somewhere stable to reside and to pay next to nothing toward a mortgage due to having tenants, is a great first step. Its also a great way to experience what being a landlord entails.
How did you find this deal and how did you negotiate it?
I found this deal through the MLS. The property did need some work and the taxes were initially high which kept other potential investors away, and allowed for greater negotiation But we saw the layout and knew that there was an opportunity to create more than met the eye.
How did you finance this deal?
We financed the deal originally with an FHA loan. After three years we refinanced and knocked off PMI along with reducing our mortgage payments by 400 dollars.
How did you add value to the deal?
Value was added through basement repairs, refinished flooring, a new roof, cleaner landscaping and fencing, as well as other minor cosmetic issues.
What was the outcome?
The outcome is great so far as we recently added another tenant to produce more income.
Lessons learned? Challenges?
Don't hesitate. Try things out and then learn as you go.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes Ryan Ranellone. A great agent and professional.
