New to Real Estate · Woodbridge, VA · Member since 2015 · 5 posts · 2 votes
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.
@ Scott Wolf - you are absolutely correct. The cash on cash ROI is going to be between 2-4%. Unfortunately I did not think this one through as well as I should have. And it will be an expensive mistake, one that I'll never make again, that is for sure!
@ Scott Wolf - you are absolutely correct. The cash on cash ROI is going to be between 2-4%. Unfortunately I did not think this one through as well as I should have. And it will be an expensive mistake, one that I'll never make again, that is for sure!
Well, hopefully you can get rid of it in the near future for a break-even so it's not too expensive of a mistake!
A silver lining thus far is that I purchased the house at $420k. I took the average of three sites estimates on the value of the house and it comes out to $431,433. Hopefully it will continue to go up rapidly and I can turn it for a bit of a profit then find a legit deal that will give me a higher cash on cash ROI.