New Construction Home close to downtown Houston
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $502,000
Cash invested: $100,400
Purchased this single family home located about 1.5 miles from Downtown Houston. It is a new construction home in an up and coming area. Expected to hold 3-5 years and then sell for nice ROI (greater than 35% cash on cash return).
What made you interested in investing in this type of deal?
Had my eye on this property for many months. It is an ideal location (close to downtown, med center, U of H) and there are many upgrades throughout the home.
How did you find this deal and how did you negotiate it?
As a realtor I have access to many listings. I pick an area and watch the market so that I know when is a good time to buy. I was able to negotiate a good deal because I was in a position to move quickly or walk away. I also know that the owner had many upgrades which were nice, but the average person wasn't going to pay for them.
How did you finance this deal?
Conventional
How did you add value to the deal?
I developed the negotiation strategy
What was the outcome?
Still holding the property, but it will appraise for more than I paid for it. However, it is rented at an above market rate.
Lessons learned? Challenges?
Hard to scale on these larger deals
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent (which helps with the ROI) and I would certainly recommend my services :)
