Buy and hold using conventional Loan with 20% down

8 Replies

Investment Info:

Single-family residence buy & hold investment in Toledo.

Purchase price: $40,000
Cash invested: $13,000

currently in Escrow will update when everything finalizes

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

out of state low price in good neighborhood to learn with smaller risks

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

MLS. price was lower than market asking. first offer was accepted.

How did you finance this deal?

conventional loan

Lessons learned? Challenges?

Buying off MLS is difficult to find good deals that cash flow competitive in a sellers market.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Danny Degnan and Dustin Hall with Key Realty

@Edwin Martinez

Nice job! I hope you can get it rented with steady cash flow.

Did you fly out there to check it out before you made the offer?

Is it move in ready or is there some rehab that needs to be done?

@Damaso Bautista

Thanks brother! no I have not flown out there yet. i am in escrow i have home inspection scheduled for 5/16 for anything that was missed in the initial inspection. it is advertised as move in ready but no property is READY-READY lol few minor things need to get fixed prior to renting. i am already shopping out for management team. ive had very good luck with my agent.

Nice buy! I'm also looking in this area. How did the inspection go? 

@Dreton Lena inspection came back good light fixture missing from front light, one cracked window, no signs of leak in roof. The biggest concern i have is kitchen sinks drains slowly under the house found alot of outdated cast iron drain pipes.

@Tim Kaminski rehab looks like a couple hundred bucks waiting on the manager to come back with bids im also sending my own contractor in for bids

I’m confused. Do you not know what it will rent for? What do your numbers look like?

repairs look like less than 1000 total....all in cost with 20%  down and closing cost is $12,800 plus the repairs. rent is approx goes for 700 my mortgage including taxes and insurance is 330 property manager 10% so i will end up with about 300 income setting aside 200 per month for repairs and ill be seeing about 100 that i just might recycle back in and pay off the mortgage quicker.

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