Second Investment Property in Beckley, WV
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $24,000
Cash invested: $6,000
Closed in mid April. All it needed was a deep clean and a fridge. To be rented for $700 on May 15th for 2 yr contract.
What made you interested in investing in this type of deal?
Home is close to a new state college that just moved into our area. Expecting the area to gentrify, so I want to ride the wave of appreciation in an otherwise flat market.
How did you find this deal and how did you negotiate it?
MLS - offered 80% of list and offer was accepted.
How did you finance this deal?
Investment commercial loan - 85% LTV, 6.74% interest, 15 year mort.
How did you add value to the deal?
Bought at a low enough price that I didn't need to add value.
What was the outcome?
Renting out May 15th, rent will be $710/month for 24 month lease. PITI payments are right around $300.
Lessons learned? Challenges?
In my market, we can get solid deals that are rent-ready on the MLS for $20k-$30k that will cash flow nicely.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I'm a real estate agent, so I was able to represent my LLC in my deal. My commission check paid for the new fridge and the clean-out, so I had no additional money into repairs.