Updated about 4 years ago on .
5th purchase for rental investment
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $112,000
3 bed 2 bath 2 car garage fenced backyard, 5 yr old house
What made you interested in investing in this type of deal?
childhood friend's home. they wanted pay off to move to larger home
How did you find this deal and how did you negotiate it?
childhood friend reached out to see if i was interested in buying house for pay off.
How did you finance this deal?
during refinance of 4th house, i asked banker if i could loan against the equity in house #4 to use as down payment for this house, #5. stopped #4 refinance and refinanced both at the same time. they were both refinancing and closing individually.
How did you add value to the deal?
refinaced #4 for a few hundred dollars more and got another house with it. helped my friends out to get to a bigger house
What was the outcome?
purchased 2 houses. appraisals came back higher than thought. just recently paid off #5 and refi #4 again for a cheaper note.
Lessons learned? Challenges?
use the equity in homes if possible, try to keep your cash as much as possible
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
robert richardson guided both parties to make deal work