2nd Long Term SFR by beginner in AZ
Investment Info:
Single-family residence buy & hold investment in Oceanville.
Purchase price: $355,500
Cash invested: $75,000
Rental Property near community college
What made you interested in investing in this type of deal?
I have another rental a few streets away that has done very well.
How did you find this deal and how did you negotiate it?
I entered criteria into Zillow and then received postings. I could see homes listed daily as well as price adjustments immediately as they occurred, on the homes I had saved.
How did you finance this deal?
I saved up the cash over a 2yr period. I did a 20% down conventional, but was not easy as it my 3rd property.
How did you add value to the deal?
The value was already there and that is what made me buy this particular home. The listing showed a price and transaction history for the home. The previous Owner had purchased the property in 11/23 and did a comprehensive update and then had to suddenly get out of it. They had listed it for $40k more in 8/24 and dropped consistently until 12/24, when I made my offer. I had watched it drop $15k just in a 30 day period brining it back down to the price they had paid in 2023 before their rehab.
What was the outcome?
I bought a property that was newly rehabbed without having to put in the rehab money.
Lessons learned? Challenges?
Have a hard money lender ready in case you need them. Although I had heard about them allover online, I was not sure how to find one. When my loan was not going to close, it was one of the options that my broker and lender told me about and actually referred me to for a conversation. If my business owner bank statements did not gain me an approval, I was going to go the hard money route. It probably would have cost me about $10k more, but I would have still been able to secure the property.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Chris Stedman with eXp Realty and Michael Demke with Intercap Lending
Most Popular Reply
Congrats Michael!