A second SFH was just added to my portfolio
Investment Info:
Single-family residence buy & hold investment in Lancaster.
Purchase price: $112,000
Cash invested: $23,000
Single family home with 4 bedrooms in the heart of Lancaster.
What made you interested in investing in this type of deal?
I was looking for a 4+ bedroom property for my friend to live in and manage with short term rentals by the room.
How did you find this deal and how did you negotiate it?
The house was listed on the MLS and had not been on the market this long. I moved quickly with an aggressive offer and negotiated further when I realized there was a PPA on solar panels for this property. A big nightmare in most real estate deals... So I used it to my advantage (11% below asking).
How did you finance this deal?
Conventional loan for investment property (20% down).
How did you add value to the deal?
I intend to rehab it little by little, I know I bought it right based on comps. Meanwhile cashflow will fund my next down payment.
What was the outcome?
Have a one-year lease and an on-site manager with reduced rent. A win-win!
Lessons learned? Challenges?
I had made an offer on another house just prior, and the condition was horrific, glad I didn't panic, decided to move on and found this deal instead. Lancaster home values have been going up steadily!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I used internal referrals to get a fellow agent in PA, she wasn't anything special but she got it done, and I got 1/3 of the commission. My lender was excellent! Title company, meh.