Door #1: First Buy and Hold Rental Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $156,800
Cash invested: $31,360
Built in 2016, 3 bedoom, 2 bathroom, estimated rent $1400. Close to Warner Robins AFB with the largest civilian workforce of all US AF bases. Looking at a 10.50% ROI. Will be a buy and hold long term rental. Appreciation is not counted on. Jumping in for Rental Buy and Hold #1. COE 12.15.2019 will be using a local property manager since I live in California. My son is a Officer at Warner Robins and introduced me to the area.
What made you interested in investing in this type of deal?
My son is in the Air Force and purchased his first home in the area. The rent to value ratio is incredibly high and with 20% down cash flows nicely for me.
How did you find this deal and how did you negotiate it?
It was a For Sale By Owner on my sons street. He saw the sign go up. I am licvensed in California and requested a 2% reduction verse using an agent. I will be getting a appraisal and Whole House Inspection but the home was built in 2016 and in great condition. Was a primary residence for a single person so 2 rooms have not even been lived in.
How did you finance this deal?
Lender finacing, 20% down with a local Georgia Mortgae Broker 5.375% fixed for 30 years.
How did you add value to the deal?
Being an agent in Califoria I was able to get the PP reduced by 2% and get a $1500 stainless steal refrigerator to remaiin in the house.
What was the outcome?
In conract as of 12th of November with an expected COE 12.10.2019.
Lessons learned? Challenges?
First time coordinating with a property manager and also long distance. I will rely on my son to assist which is a great lesson fr him as well.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Working with Ben Cox local Warner Robins Mortgage Broker.
