3 Firsts - 1031 Exchange, Roofstock, & Out of State Investment

[Brooke Cottrell]

Investment Info:

Single-family residence buy & hold investment in Douglasville.

Purchase price: $138,500
Cash invested: $50,000

First 1031 Exchange, First Experience Using Roofstock, & First Out of State Investment Purchase

I had sold a condo that really didn't cash flow and wanted to use the proceeds to purchase 2 cash flowing properties. This was the first of the two purchases. Using Roofstock gave me the confidence to actually pull the trigger on a property out of state.

What made you interested in investing in this type of deal?

It was turnkey with a renter already in place.

How did you find this deal and how did you negotiate it?

Roofstock.com
I had heard about Roofstock through listening to the BPP. I was intrigued and set up an introductory call to get more info on the service; but the idea of buying a house over the internet still seemed a little risky / irresponsible at this point. Their team did an exceptional job qualifying the types of properties based on the parameters I provided. (Fast forward 6 months and I've bought 2 more properties using their service...so I clearly think they are a value add.)

How did you finance this deal?

1031 Exchange. I did end up having to put more towards the down payment than I originally intended. We were in the process of purchasing a new primary residence and needed to tweak our debt to equity ratio.

What was the outcome?

This has been a seamless transaction. The area is appreciating and has provided solid cash flow each month. Roofstock also connected me with their partner property managers in the area -- which was also a first for me since I had previously managed all of my own properties. It has been really nice not having to deal with the day to day minutia.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Check out Roofstock - especially if you are investing out of state for the first time!