Investment Info:
Single-family residence buy & hold investment.
Purchase price: $64,000
Cash invested: $22,000
I purchased this single family home with my business partner in April of this year. We currently rent the home to a Housing Voucher tenet (formerly section 8).
What made you interested in investing in this type of deal?
It was a home that needed no repairs and fit the monthly budget I was comfortable with. It is also in a neighborhood that I am familiar with and I knew it would immediately cash flow.
How did you find this deal and how did you negotiate it?
I use the MLS to send myself and business partner daily listings that fit what were looking for. When this listing came up it was interesting to us both and checked all our boxes. I negotiated the deal myself as a licensed Realtor.
How did you finance this deal?
My business partner and I both put up 11k in cash. He gained his funds from working and investing. I got most of my funds from selling my car at the time and using some savings. When then used that as the down payment on a conventional loan.
How did you add value to the deal?
I currently manage the property so I don't have to pay anyone else to manage it.
Lessons learned? Challenges?
I would say that I would look around more and try to find a deal that resulted in more cash flow. At the time of the closing I had never heard of owner financing, that could have resulted in us getting a cheaper property and building more cash flow into the deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Myself!
