My second deal, buy and hold

[Michael Jones]

Investment Info:

Single-family residence buy & hold investment in Midwest City.

Purchase price: $50,000
Cash invested: $15,000

Purchased house for $50,000, 20% down, $5K closing cost and financed repairs of $11K. Rent rate will be $750-800. After PITI, Mx, Capex, Vacancy, property Mgmt I will clear just over $200 a month.

What made you interested in investing in this type of deal?

Off market deal at a great price.

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

My realtor that I originally met at an open house brought the deal to me.

How did you finance this deal?

Local bank and financed repairs with a zero % interest credit card and gonna use cash flow from both of my rentals to pay it off.

How did you add value to the deal?

Paint, new flooring, new doors and work outside. The owner replaced the roof before I agreed to buy it. Now worth an estimated $70K. Small but a start...

What was the outcome?

Will have it rented out for $750-$800...

Lessons learned? Challenges?

Challenging to finance a house that needs repairs. If you don’t have an owner that will work with you it could be challenging. Luckily this owner worked with me...

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Real estate agent, local bank and local contractor that I met thru another deal.