Single-family residence buy & hold investment.
Purchase price: $89,000
Cash invested: $6,000
This was the house in the middle of 3 other properties I own. I finally landed the 4th house to have 4 properties on this street. The situation was a family member inherited from a relative who passed and it was on the market for 4 hours. I put an offer together for $10,990 below asking price with a beefed up deposit/earnest money and used home equity line of credit to pay cash. The plan is to invest $6,000 in cosmetic upgrades and get it rented in 3 months. Refinance to pay off HELOC.
What made you interested in investing in this type of deal?
The interest was the property sat right in the middle of 3 other properties I already own and rent. I really wanted this property to make 4 properties in a row.
How did you find this deal and how did you negotiate it?
I found this deal with my alerts I had set up on Zillow a long time ago. I didn't negotiate as aggressively as I normally do, but I offered cash $89K from my HELOC and a quick close.
How did you finance this deal?
Used my HELOC i had on standby from my primary residence.
How did you add value to the deal?
New kitchen and bathroom are on the horizon. New paint throughout along with tearing out all the carpet and refinishing the hardwoods. Clean the siding on the exterior and deck and we got a winner.
What was the outcome?
This is still a work in progress..updates to follow
Lessons learned? Challenges?
Still a work in progress...more to come.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I did work with a real estate agent, Rob Robinson with ReMax in Salem, VA who is a pleasure to work with as an investor.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you