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First out of state purchase
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $90,000
Cash invested: $15,000
Our first out of state buy and hold. Purchased with an existing tenant and currently honoring a lease that is $300 below market value. A new lease will be established to the realized market rents. Realized cashflow in year two should be $500 monthly. This was a safe investment, but it got the ball rolling. With appreciation, we should be able to refi and pull out quite a bit of our initial investment.
What made you interested in investing in this type of deal?
Safe and stable, with existing tenant and new roof - unrealized cashflow in this property was the most appealing.
How did you find this deal and how did you negotiate it?
Local realtor, who is the best, negotiated by offering multiple offers on one property.
How did you finance this deal?
Conventional finance at 85% LTV.
How did you add value to the deal?
Raising rents after existing lease expires by $100 after first 8 months of ownership.
What was the outcome?
Buy and hold long term.
Lessons learned? Challenges?
You have got to have persons that are competent, willing and able to operate in an effective manner, that are willing to operate at your standards.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Absolutely, any day of the week.
@Cassi Justiz I am hopeful of that as well! Well, a little more than hopeful, I sill for certain be able to raise the rent on this particular house in a few months 👍
@Charles Bruce awesome!
@Matthew Thorson check out one of the replays I did about 4 posts up, I described the realtor aspect on there 👍
@Nick Maugeri
If you don’t mind, could you PM me the lender info? I met with a few when I was in the area and spoke to about 8 others on the phone and consistently came back with 5.625% w/ 20% down and 5.25% w/ 25%.
Tired of these rates 😂
@Kris Mead the lender info for AR?
@Nick Maugeri if you don’t mind.
Great job go and check on the property every quarter and even use that time to find new properties.
@Nick Maugeri Congrats on your first purchase. I live in Orange County. Also thinking about buying a rental out of state. Can you share what state/area you are purchasing your first deal and who is your lender. Thank you.
@Renee Ren look through some of the comments 👍
@Nick Maugeri Beautiful property!
You did a great job!
Originally posted by @Ola Dantis:@Nick Maugeri Beautiful property!
You did a great job!
Thank you!
@Nick Maugeri Awesome!
@Nick Maugeri would you recommend rootstock.com for someone looking to do out of state deal? Thanks
Originally posted by @Senad Pali:@Nick Maugeri would you recommend rootstock.com for someone looking to do out of state deal? Thanks
I have no experience with roofstock.com; however, the BP powerhouses sing their praises - so I am sure that it is a good idea.
@Nick Maugeri That's a very nice house. Congratulations!
@Judy P. Thank you
@Nick Maugeri Congratulations! All your hard work has paid off. Does your agent cover Little Rock? I am looking for one.
@Lena M. Thanks, and yes my agent does cover Little Rock
@Nick Maugeri Can you pm me her contact info if you don't mind? Thanks.
where did you find a conventional lender that would lend 85% ltv on an out of state investment property?