Single-family residence buy & hold investment in Mars Hill.
Purchase price: $86,000
Cash invested: $16,000
2nd property purchased in Mars Hill.
Could be STR or LTR
What made you interested in investing in this type of deal?
Love the mountains and this area. Already had one home here doing well as a STR and wanted another.
How did you find this deal and how did you negotiate it?
Local agent in area was keeping eye out for me. This house had been on market for awhile and owners just wanted to unload as they never used it. Came in with really low offer during a time where market doesn't move much going into cooler seasons.
How did you finance this deal?
Traditional financing with 20% down
Lessons learned? Challenges?
I truly thought there was no way they would accept. Don't doubt an offer until you make it. Challenge is managing a property 4 hours away.
Hi Joseph! Congrats on your investment! A few questions from a newbie interested in investing in rental properties.
1) Is the "cash invested" the down payment? How did you get the capital for the down payment?
2) How soon will you be renting the property; how long to maintain it before a tenant move in? What costs will you incur before a tenant occupies?
3) Payments by the tenants will be greater than what you pay in financing I assume. Can you share the monthly cashflow you'd get out of the property as a STR vs LTR?
4) Any book recommendation for learning about rental property investing?
thanks for the comments. I am also definitely a newbie in the real estate business. I'll do my best to answer your questions based on what i know.
1) the cash invested is the down payment. It was essentially money I saved up over the last 2 years.
2) on this new purchase, I plan to rent it 1/1/2020. I'm currently having the flooring replaced and some very small updating and getting new appliances. Since I don't live in the area where this home is, I have to count on someone out there to work on it. I'll incur approx $5500 in costs before its rented as this will cover the floor, appliances and 2 months of mortgage.
3) I'm renting for $1100 /month and based on my math, I'll cash flow about $250-300 month for a LTR. The first property we have does very well as a STR and i cashflow roughly $750/month...but it takes more work to manage as it constantly has new people coming in.
4) I'm currently listening to "Rental Property Investing" by Brandon Turner.. Amazingly informative for a newbie like me. It broke things down for me a a very basic level.
Hope the above helps and hope to connect! Good luck!
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