Single-family residence buy & hold investment in Cape Coral.
Purchase price: $210,000
Cash invested: $50,000
Single family 3/2/2 pool home in SW Cape Coral.
What made you interested in investing in this type of deal?
I was on the fence until I asked the owner if he would carry paper. He responded with 20 years, 4%. Terms sold me. I got the property under market, and prices are rising. I expect this to continue for the foreseeable future. The downside to the deal is the property is rented under market and I had to inherit the lease.
How did you find this deal and how did you negotiate it?
The sellers were referred to me by a title company. The sellers stated they wanted a solid buyer and I was that for them. It was approximately a week and a half from contract to closing.
How did you finance this deal?
I put down 50K and the owners carried the balance.
Lessons learned? Challenges?
Always look for alternatives to make a deal more attractive. You never know unless you ask.
Well done, John! I haven't received a carry at 4% yet. Love a good SF story!
"You never know until you ask."
That is absolutely true and how I've found most of my deals. Well done!
Grats on the great financing! What are the current tenants paying for rent and what will you be shooting for once you can raise it?
@Carl Hebert they are severely under market at $1360. Current rate should be $1650+. The deal was good enough I opted to do it and suffer for the duration of the lease:)
@Steve Vaughan the owner proposed those rates. I am a horrible negotiator and would probably never asked for 4%. My private guys are between 6% and 7%. Had to say YES!!!
@John Thedford how much longer us left ob the lease term? Also that is a pretty awesome deal right now
@Michael Hakes 20 months. Too long for my liking but...commit or walk! I committed.
@John Thedford for that price and interest rate private financing you can leave $5k in below market rent. Hell you got more than that in appreciation in a few months
@John Thedford seems to be nice investment, congratulations!
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