Investment Info:
Single-family residence buy & hold investment in Chesapeake.
Purchase price: $120,000
Cash invested: $28,205
The property is located in Chesapeake, VA. Has 3 beds, 1 bath, 1146 Sq Ft. The home was built in 1929, has baseboard heating. The roof was recently replaced, plumbing and electrical were upgraded within the last 5 years.
What made you interested in investing in this type of deal?
I wanted to start getting into being an REI, and a single-family home seems to start me off on the right path.
How did you find this deal and how did you negotiate it?
I found this deal through my real estate agent, participated in the agent's alert system where I saw the deal the day it was posted. I went to look at the property the day it was posted on the market and put an offer in at $5K lower than the asking price.
How did you finance this deal?
Through a conventional loan.
How did you add value to the deal?
Adding a privacy fence to the property, HVAC system, and new moisture barrier.
What was the outcome?
I purchased the property at $5K lower than asking price. There were a lot of delays due to unforeseen circumstances, negotiation between the seller and the buyer on fees and responsibilities. Overall, the deal was a success and there is currently a tenant is on the premise and has extended the lease for 1 year.
Lessons learned? Challenges?
There were some delays with the title of the property, transfer of lease, transfer of roof warranty, transfer of security deposit, waiting for the bank to close, waiting for the roof to be replaced. I've learned that there are a lot of delays due to circumstances that are out of your control and you have to be flexible to make the deal work.
