Single-family residence buy & hold investment in Independence.
Purchase price: $23,000
Cash invested: $60,000
This will be a home that we're going to fix up and keep in our rental portfolio. We actually had a resident signed up to lease this home before we even closed on it! The bank gave us an 80% LTV of the finished value right up front. We'll be able to do the purchase and the renovation at that 80% LTV, so we won't have any cash into the deal.
What made you interested in investing in this type of deal?
Fit our requirements for purchase price and renovation. Total investment needed to stay at 80% of finished repair value so we minimize what cash we had to put into the deal.
How did you find this deal and how did you negotiate it?
MLS, made an aggressive offer
How did you finance this deal?
Construction/Remodeling loan through a local bank.
How did you add value to the deal?
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I'm a Licensed Real Estate Broker in the State of Iowa, so I handled the transaction.
Nice! Excited to see the before and afters. What is happening with that foundation where you tore the back porch off?? Looks like a pile of rubble is holding the house up. Is that just in front of the block foundation?
Can you talk a little more about the financing? The bank gave you cash for 80% of the ARV to purchase and remodel? What will this bring in for rent?
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