1st SFH purchase with Roofstock - INVESTOR'S DELIGHT
Investment Info:
Single-family residence buy & hold investment in Memphis.
Purchase price: $70,000
Cash invested: $17,500
3 Bedroom 1 Bathroom Single Family Residence in Class C neighborhood purchased through Roofstock
What made you interested in investing in this type of deal?
Roofstock is a very convenient platform for Investors for an out of state market in Single Family Homes. The ability to view inspection reports, ledgers, property valuation reports and make offers on a property makes this platform unique.
How did you find this deal and how did you negotiate it?
I had created a "roof" on roofstock.com and put my criteria in it which is below:
List Price: $50000 - $100,000
State: TN
Neighborhood: 2 stars and above
No Late payments by tenants
Built: After 1950
The property was listed for $78000 and I made my 1st offer on Roofstock website for $68000. They countered at $72,000. I made another offer at $70000 and they accepted.
How did you finance this deal?
I went with Conventional financing and put 25% down. Roofstock offered their lenders but I was able to get the rate of 3.1% from my lender and I even got some credits on closing costs.
How did you add value to the deal?
I used Roofstock's referral from another investor so I got a prepaid gift card of $1000. Additionally, since I am a Bigger Pockets PRO member, I was able to get $500 credit towards the purchase. I did not make any renovations because the property was already tenanted and the inspection report on Roofstock did not have any major renovation recommended.
What was the outcome?
I only had to pay $1000 towards closing cost because of all the credits from Roofstock
Lessons learned? Challenges?
I could have got an even better rate if I had called the Roofstock lender and asked them to match the rate. But I wanted to do business with my local lender.
The challenge is because I am an out of state investor, I will have to come up with Systems so that I am able to manage the property management and handle any major issues without losing my sleep.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I called the 4 property management companies that Roofstock recommended on their listing and they all were offering very similar benefits. I ended up working with Renshaw Property Management since they were managing that property previously. They onboarded me with their portal and explained all the details related to rent, maintenance and policies.