First buy and hold, looking for more.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $29,000
Cash invested: $5,000
Bought it seller financing for $29,000, 10% down, paid the note off in 4 years. Taxes and insurance are $100 a month, rents for $650. Worth about $50k now after improvements. Market rent is probably $700-$750.
What made you interested in investing in this type of deal?
Cash flow and appreciation.
How did you find this deal and how did you negotiate it?
Found on craigslist as a rental. Landlord was elderly and ready to cash out.
How did you finance this deal?
Seller financing. 10% down, amortized over 6 years. Paid off in 4 years.
How did you add value to the deal?
Relocated washer and dryer hookups and water heater to a more desirable location. New cabinets and counter top, little electrical and plumbing and lots of paint. Did 100% of the work myself very cheaply.
What was the outcome?
Appreciation of $20k (80%ish) and $550 month cashflow.
Lessons learned? Challenges?
Should have paid more people to do the work.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
None.