Hot Rental Purchase with over 40k of equity
Investment Info:
Single-family residence buy & hold investment in Mesquite.
Purchase price: $137,500
Cash invested: $34,000
Property located in a hot first-time buyer and rental market. The purchased price gave us instant equity of $40k.
What made you interested in investing in this type of deal?
Located in a great area of town not far from downtown Dallas. It was a large 4 bedroom 2 bath we knew would lease quickly.
How did you find this deal and how did you negotiate it?
A couple we had purchased a home from before who was slowly liquidating their holdings called us to buy this one. They understood we were discount buyers from our first deal with them and just wanted to close without going to market, so we they gave us a great price from the start. So we didn’t even negotiate and paid the asking price, which was a great price!
How did you finance this deal?
Paid cash initially so we could close quick and then refinanced after leasing it.
How did you add value to the deal?
The house was a 3 bedroom but had a formal living in the front of the house. So we converted that to a 4th bedroom which increased our rental amount.
What was the outcome?
The house was rehabbed in 3 weeks and leased it to one a son of one of our investors who is in our fund.