Single-family residence buy & hold investment.
Purchase price: $195,000
Adorable 3 bed / 2 bath rambler on a corner lot with a fully fenced backyard and sideyard. 2-car garage and location within a quiet neighborhood with shared park/playground space a plus. Easy access to the 84 and minutes from schools and recreation.
What made you interested in investing in this type of deal?
The entire Boise metro has been on the rise recently for a lot of great reasons (extremely cheap cost of living relative to Los Angeles, an outdoor enthusiasts dream with 80 mountain ranges in the state, and a great brewery scene) and Caldwell is a stone's throw away. This home is located less than five miles from schools and hospitals making it an ideal rental for teachers/doctors and also falls within the best school district in Canyon County.
How did you find this deal and how did you negotiate it?
MLS - drafted and submitted my own valuation to the seller
How did you finance this deal?
Conforming 30 yr bank note
How did you add value to the deal?
The sellers didn't stage or clean the carpet - deep cleaning done, fully occupied since Aug 2018!
What was the outcome?
The market was very competitive and offered $6k above asking ($189.9k) to try to close quickly and avoid a bidding war. It worked!
Lessons learned? Challenges?
Offering a small amount above asking with the guarantee of closing quickly can save you money in a competitive market - we were able to keep all contingencies and get this under contract without having to enter into an escalation situation.
@Lacey Hunter congrats! That’s super exciting! I haven’t done any turn key properties yet. How well does it cash flow??
How does the cash flow look? You mention Caldwell, is that where the property is located? Are you self managing or using a local property manager?
Thanks Ryan and Kevin! Yes, property is in Caldwell and unlike the rest of our WA portfolio we have a local contact that split the purchase price with us and is our live in renter/manager until their house is built (at which point they will property manage). The mortgage is insanely cheap - granted, we live in Seattle so most places seem cheap - but is <$1,000 (including insurance and taxes) and we were able to refinance it along with the rest of our portfolio in Sept '19 and dropped the rate a full point. If we were to rent it out today it sounds like (per our agent / Rentometer) we could expect to get $1400-$1500 and so still cash flow a couple hundred bucks after 10% for property mgmt and 10% for capex/reserves. Not bad! The market was really competitive when we bought this place last year but haven't tracked closely whats gone on since then. Overall Boise and the surrounding MSA has been blowing up in terms of net population increase and the cost of living is so cheap compared to coastal markets I would be surprised to see trends reverse.
@Lacey Hunter - Cute place! Downtown Caldwell is really improving....if you are in town soon, check out their ice rink!
@Jonna Weber thanks for the great tip! We definitely will. I was really impressed with Caldwell when we were most recently there in May, it’s such a cute community!
Congrats on the success @Lacey Hunter !
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