Second Investment Property

[Doug Spence]

Investment Info:

Single-family residence buy & hold investment in Milwaukee.

Purchase price: $89,000
Cash invested: $33,422

I'm active duty Navy and this is my second rental property. I purchased it from Stu Grazier's company as a turnkey. He was a guest on BP Money. I'm about to close on my second property with Stu which will be my third total property. I'm obsessed now!

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

I was drawn to turnkey because the numbers make sense, and I work a full time job so it would be pretty difficult to build a team in another market. I live in San Diego so there aren't as many opportunities here in my price range.

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

I found the deal through Stu Grazier, a fellow BP member, active duty Navy guy, and real estate addict.

How did you finance this deal?

Conventional loan at 20%

Lessons learned? Challenges?

I learned about what happens when the appraisal comes back at 22k lower than expected! I had to put up more capital, but got a sweet deal on the overall price.

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

Yes! Stu Grazier and the rest of the Storehouse team.

[Ben Durwood]

@Douglas Spence  I'm curious how you know you got a sweet deal when the appraisal came in so much lower than expected?  How did the appraised value compare to the purchase price + rehab costs?