Updated about 5 years ago on . Most recent reply
Virginia Ave purchase
Investment Info:
Single-family residence note investment investment.
Purchase price: $99,000
Cash invested: $25,000
1954 bungalow with 4 bedrooms 1 bath with 1250 Sqft. House on .4 acres.
What made you interested in investing in this type of deal?
I had a renter lined up for "rent to own" in 5 years. Guaranteed purchase price 140k, rentor agreed to pay all taxes, all maintenance, all utilities and closing expenses. She is anticipating to purchase it herself within 2 years. During the rental phase, she pays 1200.00 a month and all utilities. She has paid for all remodeling within the house at her expense. Our mortgage is 465.00 so a positive flow of 535 each month is nice. We agreed to bank 200.00 of her rent to escrow.
How did you find this deal and how did you negotiate it?
Just driving around the area
How did you finance this deal?
Conventional, because we didn't know any better
How did you add value to the deal?
By finding a renter that is willing to pay 140k on a house we paid 99k
What was the outcome?
Everyone is happy. So far the only expense was 3 door knobs and the $39.00 electric bill before renter took it over
Lessons learned? Challenges?
Love the process, need to figure out how to find temporary investors to work with
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes.
Bailey Covey - Power realtors cambridge, md
