Single Family House in a Solid Neighborhood

[Laura Babka]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $354,000
Cash invested: $70,750

Single family house, well cared for in a strong neighborhood that is relatively undervalued and shows continued growth. Great area for young families.

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

I was looking for a property that did not require a lot of work and that would hold its value. I also wanted the option of flipping it if I didn't enjoy being a landlord, so I was not willing to take a risk on a neighborhood that would need 10 years+ to appreciate.

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

I used an experienced realtor and negotiated it the standard way. There were 6 offers but I was able to make a strong one and I won the deal.

How did you finance this deal?

Combination of mortgage and cash.

How did you add value to the deal?

Refinished floors, new refrigerator, deep clean.

What was the outcome?

I have some great tentants. I am getting premium rent but my plan is to take care of the property and get the best tenants. I hope to do more work and re-invest in the property over time.

Lessons learned? Challenges?

Be careful dealing with tenants during the application process. I had a tenant convince me to do work but then at the last minute he wouldn't sign and he tried to renegotiate the lease. I had to end the negotiation at that point and move on. Next time I would not do work without a signature.

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

Yes! I am an agent myself.