Updated over 5 years ago on . Most recent reply
This is my first buy and hold rental deal.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $420,000
Cash invested: $93,000
First deal. I've learned a lot with this one and would do a lot of things differently if I had to do it again.
What made you interested in investing in this type of deal?
Looking to build a portfolio of single family rentals in my area.
How did you find this deal and how did you negotiate it?
This is a neighbor. He told me they were going to sell and move out of state. I made him an offer and we went through a title company. No agents involved.
How did you finance this deal?
We put down about 23% and took a loan for the rest.
How did you add value to the deal?
Value added by not involving an agent.
What was the outcome?
Closing in 2 days.
Lessons learned? Challenges?
I would have done more research on all of the little extra fees involved with going through a title company. I also would have offered less for the buying price even though the house is in excellent condition and move in ready.
Most Popular Reply
@Cory Kline congrats! What is your cash on cash return going to be on this? $2,700 per month for a $420,000 house seems like some thin margins to me.