Townhouse (Cash Station)
Investment Info:
Single-family residence buy & hold investment in Chicago.
Purchase price: $46,000
Cash invested: $15,000
Brick 2 Bedroom 1 Bth Townhouse Rental for passive income.
What made you interested in investing in this type of deal?
Good passive income and below market value investment
How did you find this deal and how did you negotiate it?
Researched MLS, the property was initially listed for 80k and gradually went down in price as it stayed on the market. The property was listed for 63k when I purchased it for 46k. I was a strong buyer and the seller wasn't getting many looks on the property so it worked out well for me.
How did you finance this deal?
Conventional financing 20% Down. I was fortunate to find a lender that finances properties under 50k. The property can need some work but the utilities have to be working for the appraisal.
How did you add value to the deal?
remodeled the kitchen, bath and basement
What was the outcome?
The outcome was good. the property has added value and positive cash flow
Lessons learned? Challenges?
I should have pushed the seller a little more and asked for some closing costs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
MB Financial lends on real estate under 50k but I was informed by the loan officer that they were purchased by Fifth Third Bank and they intend to stop the real estate loans under 50k sometime in March. :( But you should check and verify!!!