Investment property for Buy and Hold with little repairs needed

[Humberto Valle]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $15,500

Property was purchased and negotiated from investor with current tenants in place. Home was overpriced, I negotiated against listing agent to a much lower than asking price and invested very little on cosmetic upgrades. Home is now worth at just over $200k.

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

The potential value it had and the current condition which only needed cosmetic work upgrades.

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

Through regular search engine searches and tenancy networks.

How did you finance this deal?

Through conventional loan with a local lender at 5% downpayment, financed with LLC income.

How did you add value to the deal?

Negotiating, funding, and doing project management and some of the handyman type work. I do a lot of the handyman work for some of my clients and for all my properties, whether they are long term rentals, my own home, or the airbnbs we have or manage for others.

What was the outcome?

Happy tenants, high equity and little money invested.

Lessons learned? Challenges?

The struggle here was financing the purchase through the llc because of the way the llc we've been filing with losses and had to adjust certain things last minute to make the funding work. Once that was done, it was peachy.

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

Negotiated against the listing agent and the owner.