2nd single family rental property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $35,000
Cash invested: $8,000
Bought on a 15 year loan at 35k
Financed entire purchase price. Put new windows in, paint and light fixtures, minor plumbing. 8k invested total. Getting 750 rent and property now has value of 74k.
What made you interested in investing in this type of deal?
I am very intrigued with owning as many cash flowing assets as possible
How did you find this deal and how did you negotiate it?
I found this deal through a Facebook add from a motivated seller. He was having medical problems and wanted to sell and relocate to a house with one level. I offered 25k but ended up settling at 35k.
How did you finance this deal?
15 year commercial loan 5 year fixed with 5.65 interest. Commercial loans in my area arent doing 30 year fixed
How did you add value to the deal?
Put all new windows in, refinished hardwood floors, all new light fixtures, painted exterior and interior.
What was the outcome?
Put about 8k into it. Appraised for 74k after.
Lessons learned? Challenges?
I have learned quite a bit from this property so far with just how to deal with tenants and having best strategy there
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I always work with my wife Brooklyn Buchanan who is a fantastic realtor in Evansville, In.