Single family 4 Bedrooms, 2 full bathrooms with detached 1 car garage and off-street parking located in a great neighborhood in Sheboygan. Ranch home with a fenced in backyard. Newly remodeled home fully updated with stove, fridge, dishwasher, microwave, all brand new! Basement partially finished with washer and dryer included.

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

Multiple things, this property was in our buy box, we liked the location, we were able to get the property for 9% under it's original asking price, and it was flipped by someone we trust so it doesn't need work. This property also had an accepted offer where the buyer backed out however they paid for the home inspection and the owners did repairs to correct any findings which we didn't have to pay for.

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

Our real estate agent owned the house, knew what we were looking for, and called to offer it to us. As long as we agreed to the purchase price the house was ours.

How did you finance this deal?

We financed with conventional financing putting 30% down. I was a bit shocked that 20% resulted in 8.125% interest even with an 800 credit score. Putting 30% down and paying an extra $900 in fees we were able to get the rate to 6.875% which was more manageable as a long term rental.

How did you add value to the deal?

With the property already flipped their is limited work to do. We put additional money down to improve cash flow. Other than that with this property our value add was limited.

What was the outcome?

This week we will be listing the property for rent and waiting to place our next set of tenants.

Lessons learned? Challenges?

I think the biggest challenge as this was a pretty simple deal was the sticker shock of the interest rates. I know they are always moving but I was estimating 7% on the high end. I am fortunate enough to have the cash to increase the down payment but if I didn't I would run into cashflow issues with this property. This deal all came together really quickly but in the future I need to find out my rate ahead of time.

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

I worked with Bank First in Sheboygan, WI for financing and Pleasant View Reality in Plymouth, WI for my agent. I HIGHLY recommend both of them. They have now helped us through 7 total properties and we couldn't be happier with their service! If you are looking for a loan officer or real estate agent and are in the Sheboygan area I would recommend Wendy Conto and Matt/Nikki Kapellen!