Penmoken Park house in Lexington, KY
Investment Info:
Purchase price: $212,000
Cash invested: $53,000
Single Family Home across from University of Kentucky. 5 BR rented to college students for 475 / room
What made you interested in investing in this type of deal?
The college and strong rental market. Nearby Central Baptist hospital.
How did you find this deal and how did you negotiate it?
Walking by. Was actually looking at another property a few doors down that needed more work / rehab. Listed at 239,000. It was on the market for a few months. I was not interested originally because of the price tag, didn't think the seller would negotiate as much as they did. Space was much larger in person than what appeared on the listing. We offered 205K and settled at 212K. Appraised for 235K.
How did you finance this deal?
Hard money lending 25% down through LLC.
How did you add value to the deal?
Offering to close within ten calendar days. Having my lender ready to go, money ready to go. Title attorney ready to go. Proof of funds. History of closing fast.
What was the outcome?
We own the property!
Lessons learned? Challenges?
Closed the deal 2 weeks before the school year began. Missed the ideal rental time to get students in for the school year and get the rental going strongly. Losing a few months of rent.