Investment Info:
Single-family residence buy & hold investment.
Purchase price: $245,000
Cash invested: $98,060
4/2 in one of the fastest-growing neighborhoods in Austin. The neighborhood is very mature with an eclectic mix of houses. As of now about half of these homes have been recently renovated and sold.
Easy access to 183 and across the street from the High School
What made you interested in investing in this type of deal?
This property was bought with tenants already occupying the property. The initial rent from 10/15/2020 to 5/30/2021 was $1,400 per month, with a renewal rate thereafter at $1,500 per month.
The overall condition of the house is good and there has recently been a new roof installed and there has been a new layer of insulation added to the attic.
How did you find this deal and how did you negotiate it?
Found the deal on Zillow. Currently, it's very much a Seller's market here in Austin, however, we still managed to negotiate a lower selling price and seller credits despite the majority of homes in the area going for more than the asking price.
How did you finance this deal?
Financed by a conventional loan through our wonderful mortgage broker Diana Landry over at Canopy Mortgage. In order to get the low-interest rate of 2.99%, we needed to put down 40% of the purchase price, which we were more than happy to do.
How did you add value to the deal?
No value-added to deal as of now since the property is currently occupied. Once the property is vacated, we plan on making improvements to the property by adding an extra bathroom and extending the home in the back with a covered patio.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
David Ivy from Realty Austin was our Real Estate agent and Diana Landry from Canopy Mortgage. Both were phenomenal and worked well together to ensure the deal was completed on time.
