Single-family residence buy & hold investment.
Purchase price: $174,900
Cash invested: $12,000
This was another investment property bought in 20017 w/ about $12K out of pocket. It has been rented by the same person for since '07 for $900/month. It has been converted into a 2-year lease to own option w/ $40K upfront and the remaining balance paid at closing. Tenant has added an alarm system, ring doorbell, fence, and has kept up all maintenance since they moved in. The property is now worth about a little over $200k based on Zillow.
What made you interested in investing in this type of deal?
Honestly, it was a different type of deal that I had never done before (pre-construction).
How did you find this deal and how did you negotiate it?
A builder and negotiated through a realtor.
How did you finance this deal?
Conventional financing via Fannie Mac
How did you add value to the deal?
I have put anything more into this property since it was built in '07. I had a long-term tenant w/ excellent credit ready. They have added an alarm, ring doorbell, fence, etc.
What was the outcome?
We just implemented a 2-year lease to own option w/ $40k upfront and the remaining due in 2-years.
Lessons learned? Challenges?
Be sure to put the lease option in place upfront with specifics detailed out so that you don't have to hold it any longer than you want. This was supposed to be a 5-year lease to own deal initially. There were and are many lessons being learned on this deal.
@Brent Paul Thanks
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