Investment Info:
Single-family residence buy & hold investment in Baltimore.
Purchase price: $52,000
Cash invested: $30,000
I got this deal through direct marketing to the seller, who was a tired landlord. The tenant has been in place for 4 years. I was going to flip it, but decided to keep it since it was on a home owner block and it was semi-detached. Tenant was willing to sign a 2 year lease. Also I bumped up the rent to $1350. They also pay $200 towards to water bill each month.
What made you interested in investing in this type of deal?
Semi-detached, home owner block, no vacants or boardup, high ARV
How did you find this deal and how did you negotiate it?
Marketed to seller directly. I negotiated directly with seller, tired landlord.
How did you finance this deal?
Private Lender
How did you add value to the deal?
After closing, we have made the property complete lead free, minor work on the outside, replaced all exterior doors, rehabbed the bathroom upstairs, and added/rehabbed a brand new shower in the basement. We have done an all new drain line leaving the house. River Capital Investing has painted the basement and now focused on rehabbing the kitchen.
Made the unit lead free, updated exterior deck, porch and other items, 2 full new bathrooms, all new plumbing.
What was the outcome?
A great cash flowing property with significant equity
Lessons learned? Challenges?
Be careful, buying properties with tenant in place. We learned there was low water pressure since the seller didnt tell us there was a a leak in the basement where the main line comes in so the tenant could not run the washing machine and have someone take a shower at the same time!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Myself (investor/agent), Private lender, lead inspector, general contractor and other contractors to perform construction services on the property to get the property up to my personal standard of real estate investing.
