Bought my first rental property! In Tallahassee - 16% cap rate!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $26,000
Cash invested: $26,000
Condo. 1 Br, 1 Bath. 546 sq ft, built in 1968
Purchased $26,000 all cash.
Cash Flow: $380
https://www.zillow.com/homedetails/2241-W-Pensacola-St-APT-50-Tallahassee-FL-32304/69849950_zpid/
What made you interested in investing in this type of deal?
My parents are realtors in Tallahassee, where I'm from, and they inspired me to start investing.
Told me about buying small condo homes to use as cash cows.
Interior is all upgraded appliances, and the unit is near Florida State University.
How did you find this deal and how did you negotiate it?
Parents sourced this property for me. They have great relationships with other realtors, so they heard about this unit before it hit zillow. I got early dibs. Negotiation wise, unit listed at 30K...my parents were confident we could get 26-27K, so we started at 25K and met in the middle.
How did you finance this deal?
Bought this straight cash. Sourced the property on Thursday, negotiated over the weekend, and was signing papers by the following week.
How did you add value to the deal?
n/a
What was the outcome?
n/a
Lessons learned? Challenges?
First time investing, and I am eternally grateful for having people I really trust to walk me through the process...learned alot about property taxes, management, insurance, leverage, etc.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My dad! Yuyu Zhang, Tallahassee Florida,