Buy and Hold Rental Property.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $51,900
Cash invested: $7,500
I purchased this property from a seller who had been trying to sell for well over three years. Throughout these three years, she had been reducing the price down from $125,000. I made a cash offer of $51,900, no contingencies or home inspection and she accepted. It was a small two bedroom single family home, which we converted into a one bedroom to open up a larger space for the living room. This property currently rents for $900.
What made you interested in investing in this type of deal?
I was interested in this type of deal because it had been on the market for over three years, had lots of recent updates, and was on a decent block within our city.
How did you find this deal and how did you negotiate it?
I found this deal on the MLS and offered the seller all cash with no contingencies or home inspection.
How did you finance this deal?
Cash
How did you add value to the deal?
We may have slightly decreased the value by opening up a wall to convert to a one bedroom but our purchase price allowed us to do this without losing much equity.
What was the outcome?
We had the property rented within the first month. It is tenant occupied for $900 per month.
Lessons learned? Challenges?
Always check behind the fridge.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with my real estate agent to obtain the deal.
