Single-family residence buy & hold investment in Louisville.
Purchase price: $50,000
Cash invested: $45,000
I thought I would post this to show folks you can still do fairly well with buy and hold in good areas of Louisville Ky. I bought this house in AS-IS condition and it was very very rough! It needed everything! I mean everything! The floor joist were rotted, all drywall was either damaged or falling apart. In short it was a complete gut job! I was going to flip this property but after running the numbers I feel this one is a good rental to keep for a while. Since it is all new there should be very little capx and the neighborhood is really good as well. Just made sense to keep it.
1 and 1/2 bath
1 car attached garage
ARV $145,000 with total invested of $95,000
25 year am
5 year lock
Total payment, tax and ins roughly $675.00
Cashflow (not including PM, vacancy or capx) $575.00
I paid cash for the house. I then got a construction loan to rehab the house and did a refi to perm loan for a total of $0 out of pocket on this deal. I could have actually got a little cash out but I prefer to have the equity.
If you can't find deals today make them!
Little before and after
What made you interested in investing in this type of deal?
Equity and cashflow
How did you find this deal and how did you negotiate it?
I got this deal from an agent whom I have bought other deals from . Bought this one in a package deal. Win win for all parties!
How did you finance this deal?
Construction loan to rehab
Refi to perm loan with $0 out of pocket
How did you add value to the deal?
Full gut rehab
What was the outcome?
Kept as a buy and hold
Lessons learned? Challenges?
As always make sure you know what you are buying! Don't assume things are good like floor joist and so on. DO INSPECTIONS!
Glad this worked out for you. Do you mind telling us what neighborhood this property is located in?
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