Double next door purchase > 3bd 2ba twins

[Jonathan Small]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $14,000

This is one of 2 houses we bought from another investor. 2 houses cam with tenants not paying market rent. Class B- properties that had deferred maintenance. Both homes we almost identical in build and floor plan.

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

I was interested in this deal because the properties were in a good rental neighborhood. They were 1990+ build on a slab. I liked that they both had long term tenants that were paying below market rent.

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

I found this deal by networking with local real estate agents. I frequently text and call agents to see who has a deal. One of my text landed this deal.

How did you finance this deal?

I cross collateralized the equity in another deal to purchase these properties. Therefore, I didn't have to put down any money. I used about 20k of equity in another deal as a down payment for this deal.

How did you add value to the deal?

I added professional property management, i fixed deferred maintenance , added lvp floors, interior paint, lighting and pluming fixtures updated

What was the outcome?

We ended up keeping one of the houses and flipping the other house. we planned on keeping both properties but happen to run into someone that was looking for a good primary home to live in.

Lessons learned? Challenges?

I learned to look for properties with long term tenants that are not paying market rent. This allows me to get a better deal. I also like properties that are self managed by the owner. I can add value by brining in professional management.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Marissa Brooks with https://www.herndonrentals.com/, Trai Gay was my property inspector, Guardian Bank of Valdosta was my lender