My third rental property
Investment Info:
Single-family residence buy & hold investment in Georgetown.
Purchase price: $148,000
Cash invested: $59,000
3 bedroom, 2.5 bath with about 1700 sqft.
What made you interested in investing in this type of deal?
I own the single family home next door. I wanted to have a Park Place and Boardwalk ;)
How did you find this deal and how did you negotiate it?
Since I own the home next to it, I knew the owner of the home. He was no longer living in the house and was coming by once per week to mow. I asked him if he wanted to sell, and we came to an agreement. No realtors used. I wrote my own purchase contract and used my lender to help with the closing.
How did you finance this deal?
30 yr. fixed mortgage with 25% down.
How did you add value to the deal?
The house was in rough shape. The previous owner had buddies living in the house, and it was not well kept. I put about $20,000 into a rehab and a ton of my own effort. Luckily, I purchased the house for $148,000. Current market value is around $185,000.
What was the outcome?
The house is rented. The current tenants raved about the house and asked me if they could buy the house when their lease was up.
Lessons learned? Challenges?
This was my first rehab. Although I hired a general contractor, I ended up doing a ton of work myself for two reasons: First I was trying to save cost, and second, I underestimated how much work needed to be done. I couldn't "see the forest through the trees."
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I used Gaines' Renovations for the rehab. I highly recommend them, and will use them again.
I use Sun Lending USA for lending on all of my deals. Peter will "make you happy."
