2nd investment property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $87,000
Cash invested: $1,200
This is our second investment buy. It was in a B- neighborhood, so we were a little worried about being able to rent it out initially but we had 100s of applicants because of how nice it is. We were able to rent it at a premium and self-manage for a cash flow of $300 per month.
What made you interested in investing in this type of deal?
It was a very nice house and move-in ready with little to no work needed.
How did you find this deal and how did you negotiate it?
MLS.
We didn't do much negotiating because we felt the price was fair based on the 1% rule and what we could get from a monthly rent perspective.
How did you finance this deal?
20% down conventional loan.
How did you add value to the deal?
We didn't do anything to this other than buy a refrigerator.
What was the outcome?
Rented at a premium price to get $300 month in cash flow after accomodating for capital expenses, vacancy, and PM fees.
Lessons learned? Challenges?
Nothing major so far, but there is always time. LOL.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. Tiffany MacManus and Jenny Heins
