Buy and hold #3 - Chicago

2 Replies

Investment Info:

Single-family residence buy & hold investment in Chicago.

Purchase price: $85,000
Cash invested: $1

Purchase: $85,000 (plus $40,000 construction loan) using private money
Rehab: $29,500
Refi:$ $125,000 (rate and term)
ARV: $170,000
Rent: $1600
Property management: $128
NOI: $ $1,255
Principal + Interest: $676.40
Cash-flow: $ $579

What made you interested in investing in this type of deal?

cash-flow

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Front end: Hard money
Back end: rate and term conventional

How did you add value to the deal?

Cosmetic rehab

What was the outcome?

Tenant signed a 2 year lease for $1600

Lessons learned? Challenges?

Private money is so much better than hard money!

Nice job Angie!  Looks like a solid one.  As you build up your cash reserves, you might look at more conventional rehab options.  Requires some down payment, but this way you save on carry costs and fees, thereby adding to the bottom line.  Best of luck with the investments and keep up the great work!

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