2nd Property to add to my porfolio

[Ryan Young]

Investment Info:

Single-family residence buy & hold investment in Hattiesburg.

Purchase price: $67,000
Cash invested: $16,600

List price was $72,500 and worked out a purchase price of $67,000 including $1,200 in closing costs covered by seller, foundation was repaired prior to closing ($3,500), and seller paid all of the realtor fees as well since it was FSBO. Tenants signed a 12 year lease agreement for &900/month and moved in the day of closing. My PITI is $478, so this property is cash flowing nicely. It is in a great area and am very pleased with how this deal worked out.

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

This property was a FSBO on the MLS. I offered him $10k under list price to see if he was motivated and worked up to the purchase price from there.

How did you finance this deal?

Conventional Loan with 20% down

How did you add value to the deal?

First was to negotiate the price down and to buy at the right price. I purchased for $67,000 and it appraised for $81,000. After the lease agreement expires with the tenants I have in place, I will spend roughly $10k-15k to update it and will appraise for roughly $115,000.

What was the outcome?

So far, so good. Tenants moved in the day of closing and has been great so far. Very happy with this deal.