Updated over 6 years ago on . Most recent reply
First SFH purchased!!
Investment Info:
Single-family residence buy & hold investment in West Palm Beach.
Purchase price: $148,000
Cash invested: $48,500
3 bedroom, 1-1/2 bathroom single family home purchased in the Northwood Historic District in the West Palm Beach Area.
What made you interested in investing in this type of deal?
Projected cash-on-cash return. Target achieved with current actual annual ROI = 13%+
How did you find this deal and how did you negotiate it?
Recommended by partner real estate agent.
How did you finance this deal?
Conventional mortgage.
How did you add value to the deal?
Addressed existing issues with roof, minor electrical, HVAC repair and heater installation, fixed broken windows. Acquired property at discount through post-inspection negotiation. Between future lease contracts, intend to fix floor/foundation issues with minor rehab throughout.
What was the outcome?
It continues to be an incoming producing property with net cash flow after financing, maintenance, etc.
Lessons learned? Challenges?
I manage this property myself. The inherited tenant does not shy away from reporting issues. After 3-1/2 months of ownership I would hands-down recommend that for buy and hold properties, to always address any maintenance related issues immediately. Problems don't go away or get better by themselves. Just handle them.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Heidi Johnson, Keller Williams.
