Upgrading Huntsville Venture

6 Replies

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $245,000
Cash invested: $79,000

Attractive B class property within 1 mile of HSV medical district.

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

Long term hold for (fingers crossed) equity gain along with good cash flow.

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

Zillow. It had been sitting for 6 months. Negotiated them down $30,000 from asking price.

How did you finance this deal?

Small local bank.

How did you add value to the deal?

Yes, put $34,000 into a new HVAC, Paint, Lighting, Tree Removal, and a few other odds and ends.

What was the outcome?

So far so good. Renters in place in October 1, property is performing as expected.

Lessons learned? Challenges?

Upgrading to B class is worth it.

Difficult to keep a good contractor busy enough to keep loyal.

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

George Lensch (AGENT)

@Brett Hennessy congratulations on the completion of your project.

What drew you to this property, other than it is near/in the medical district? Are you self managing? Knowing what you know now, what would you have done differently that would have made the process better? Congratulations again!!

How much are you renting the property for?  How did you put less than 20% down on an investment property(79k total-34k repairs < 20% of 245)?  What's the size of the property?

Thank you Scott.

Jessica, I left that to my agent George Lensch this time and it was a lot easier then trying to do it myself.

Samuel, thank you for the good questions. I chose this property primarily for its location, but it also met a lot of other good criteria. Specifically, brick construction, good bones, needed about $35k of improvements which allows me to offset other cash flow in 2019. I am self managing. My strategy has always been to fix em up right in the beginning to eliminate most problems for the first several years making self management easier. I would have been present during the tree removal. Contractor put a small hole in the roof and it took me 3 months to get $200 back from him. If I had been there to oversee I would have with held my cost to fix it from the original payment.

Peter, it is renting for $1850 on a 12 month lease. My apologies, I may have entered the total cash invested incorrectly. I put 30% down $73,500 and $5,500 in closing costs. Rehab was another $34,000. Property is 1880 sq ft.

Originally posted by @Brett Hennessy :

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $245,000
Cash invested: $79,000

Attractive B class property within 1 mile of HSV medical district.

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

Long term hold for (fingers crossed) equity gain along with good cash flow.

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

Zillow. It had been sitting for 6 months. Negotiated them down $30,000 from asking price.

How did you finance this deal?

Small local bank.

How did you add value to the deal?

Yes, put $34,000 into a new HVAC, Paint, Lighting, Tree Removal, and a few other odds and ends.

What was the outcome?

So far so good. Renters in place in October 1, property is performing as expected.

Lessons learned? Challenges?

Upgrading to B class is worth it.

Difficult to keep a good contractor busy enough to keep loyal.

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

George Lensch (AGENT)

 Congrats Brett!

Are you managing the property yourself? Or do you have a property management company doing that for you?

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