Single-family residence buy & hold investment in Edcouch.
Purchase price: $5,000
Cash invested: $100,000
We built two 1180 sqft homes in a vacant lot. They are both 3/2 with Central HVAC and rented them for $750 each the refinancing after build paid us back all our outlay and we have one of the two free and clear and a mortgage on the second. Cashflow is $900 over the mortgage excluding normal fees for management etc.
What made you interested in investing in this type of deal?
My wife's mother had owned the lots for 20 years and never did anything with them. My wife said we would NOT do the same and I was told I had to build a house on it. I liked my marriage and so I built the house.
How did you find this deal and how did you negotiate it?
As mentioned above.
How did you finance this deal?
This was originally done with a combination of cash out of pocket and a 401k loan.
How did you add value to the deal?
I guess personally my value add was stepping in as a GC and subsequent property management. I also utilized the opportunity to identify additional opportunities in the area that we are currently under contract on.
Lessons learned? Challenges?
We learned what it takes to build and what to look for in your contractors in that area. The local municipalities are different and let's say a bit more laid back than the norm. However, they are also very territorial and require a good bit of handholding. Nothing happens on your schedule unless you are there to ensure it does. All appointments are a simple guideline in that part of the world unless you dictate the urgency there will not be any.
Good way to describe the Valley attitude. Congrats on the build!
Congrats! That is an overall good description I would say. Great property!
Hi Brian: I'm a year late to this. I like your property, congrats. I have a property in Pharr I want to build on. It's a rental, zero mortgage, and I want to add two efficiencies behind it. I'm originally from Pharr, and have seen some properties with units behind main home. I need to check if that's still allowed. I'm looking for a builder, I am curious how you went about it being remote. I'd be remote as well. Thanks.
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