Investment Info:
Townhouse buy & hold investment in Jessieville.
Purchase price: $130,000
Cash invested: $15,000
3bed 2.5 bath in a gated and surveilled community.
What made you interested in investing in this type of deal?
At the time I was looking to get involved in wholesaling and make fast cash to do rehabs. But once I viewed the property I figured it would make sense to buy and hold. 2 years later and excellent tenants have made it a great cash flow.
How did you find this deal and how did you negotiate it?
I found this deal through a realtor that was introduced to me by a relative. At the time I didn’t have much knowledge of negotiations so I relied heavily on my realtor. I told her exactly what I was looking for and she gave me tips along the way.
How did you finance this deal?
I used a conventional loan for this deal.
How did you add value to the deal?
In negotiations, I got the previous owners to fix the roof, hvac, and to add new carpeting. Meanwhile I took care of minor upgrades such as new vinyl flooring, porch material, and rodent barrier protection for the home.
What was the outcome?
No complaints other than a few appliance issues here and there. Tenants have been great.
Lessons learned? Challenges?
In the future I will most likely look for homes without HOA's as well as find alternative ways to finance projects and grow my portfolio.
