2702 Bainbridge Blvd

3 Replies

Investment Info:

Single-family residence buy & hold investment in Chesapeake.

Purchase price: $120,000
Cash invested: $28,205

The property is located in Chesapeake, VA. Has 3 beds, 1 bath, 1146 Sq Ft. The home was built in 1929, has baseboard heating. The roof was recently replaced, plumbing and electrical were upgraded within the last 5 years.

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

I wanted to start getting into being an REI, and a single-family home seems to start me off on the right path.

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

I found this deal through my real estate agent, participated in the agent's alert system where I saw the deal the day it was posted. I went to look at the property the day it was posted on the market and put an offer in at $5K lower than the asking price.

How did you finance this deal?

Through a conventional loan.

How did you add value to the deal?

Adding a privacy fence to the property, HVAC system, and new moisture barrier.

What was the outcome?

I purchased the property at $5K lower than asking price. There were a lot of delays due to unforeseen circumstances, negotiation between the seller and the buyer on fees and responsibilities. Overall, the deal was a success and there is currently a tenant is on the premise and has extended the lease for 1 year.

Lessons learned? Challenges?

There were some delays with the title of the property, transfer of lease, transfer of roof warranty, transfer of security deposit, waiting for the bank to close, waiting for the roof to be replaced. I've learned that there are a lot of delays due to circumstances that are out of your control and you have to be flexible to make the deal work.

Congrats on getting your first property Quan. I am wanting to do exactly what you have just done in the Chesapeake/Norfolk area.

I feel that I would benefit from doing a deal like you did; SFR, MLS, conventional finance, etc. as my first deal so that I can get the process down before I start doing other more creative type of deals.

I've read everything I can, but know that the only way to get proficient is to put it into practice, which is a little intimidating. I've been in the analysis paralysis mode.

Would love to hear anything else that you're willing to share about the deal. Do you have any agent or lender recommendations? Are you using property management?

Thanks for sharing your story!

Heather

Heather,

I'm not using a property management, my tenant text or email me directly with any issues on the property. Most property management company will charge a 10% commission for just relaying the information from your tenant to you, and with just starting out, I'm trying to make as much profit as I can. Since purchasing the property, I only had to went out to the property once to fix a small plumbing issue. The biggest challenge for me after I purchase the property is collecting rent. I wanted a method to track my rent payment, sent out alerts and reminders, and keep it organized, however I ran into the issues of the tenant unable to set up their profiles and bank account so I resort to the old fashion way of having the tenant sending rent to a P.O Box every month.

I used a lender that I had previously worked with when I purchased my house, sometimes the lender is not as responsive as you would like. For lenders, I like to work with ones that I already have an established relationship with, it makes the process moves a bit smoother. 

As far as agent, I would not use the same agent again. What I did before I found my agent was browsing through Zillow, Realtor, Redfin and contact the agent that way. Before this deal, I was browing through Zillow and contacted the agent through Zillow, I set up a tour the next day through the agent. 

Quan



 

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