Single Family Buy and Hold #2
Investment Info:
Single-family residence buy & hold investment in Live Oak, TX.
Purchase price: $192,000
SFR in B+ neighborhood with modest appreciation.
What made you interested in investing in this type of deal?
I used the VA loan and got paid at closing, so my ROI is 100%
How did you find this deal and how did you negotiate it?
I looked for a house for myself in a neighborhood that would provide me several exit options.
How did you finance this deal?
I used the VA loan to avoid a downpayment and PMI.
How did you add value to the deal?
I didn't add any value to the property.
What was the outcome?
I continue to hold the property.
Lessons learned? Challenges?
I learned that I should not waste energy adding amenities that don't ROI. For example, I left a brand new, high end stainless steel washer, dryer, and refrigerator in the house thinking it would increase rent potential. I didn't get to raise rent because of those appliances, and they cost me money 2 years into service when each broke. In Texas those appliances are considered tenant responsibilities. I should have let the tenant bring/buy their own appliances.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Manuel Esparza, Agent, www dot ManuelsHomes dot com
Rodrigo Gonzalez, Manager, Amerivision Properties, LLC