First Rental Property! (long distance)
Investment Info:
Single-family residence buy & hold investment in Akron.
Purchase price: $47,000
Cash invested: $10,000
Single family home in "hipster" area.
What made you interested in investing in this type of deal?
I was unfortunate (later fortunate) enough to get this long distance property under contract the week before the entire country shut down for COVID-19. Needless to say, even after doing all of my research and preparing, I was terrified when it took 3 week just to get on the phone with the water company after closing to change the name. Fortunately, with the help of a great realtor, supportive property management company, and some patience, the home is now rented for our initial listed price.
How did you find this deal and how did you negotiate it?
I came across this listing on the MLS while brainstorming with the realtor I connected with on areas and desirable attributes for single family homes in the Akron, OH area. We were able to come down about $3k from asking due to some exterior painting that needed to be done and closed almost on time with only minor hiccups.
How did you finance this deal?
I financed this through a traditional 30-year fixed loan with 20% down. Huntington bank does mortgages down to $30k so it worked out perfectly.
How did you add value to the deal?
Found it, secured financing, and made sure that I trusted all of the people I was working with in the process.
What was the outcome?
I now have my first cash flowing rental renting for $850 p/m. All inclusive mortgage & PM fees total $491. Factoring in 15-20% for maintenance and vacancy, I'm looking at over $200 cash flow.
Lessons learned? Challenges?
It doesn't hurt to ask for the seller to fix things. So long as it is not "as-is," you can ask for the world. The process is scary at first but find a realtor who understands what you are looking for and not just looking for a quick sale.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
-Bryan Garra was the absolute best realtor I could have hoped for. If you are looking in Akron, use him!
-Huntington Bank - was vital to making this deal work with such a low financed amount. Fairly easy to work with though had some additional criteria at the end of the deal when COVID was in full swing.
-Carolyn-Riley Property Management - reasonable fees and easy to work with. Patrick and Jackie are great.
