Single family silent partner deal!

[James H Webb III]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $30,000

SF home purchased with HELOC from my House hack. I have owned the property for a year. Property averaged a 12.5% cash on cash return and with rental rates rising I am projected to grow that number to 22% within the next 3 months!

What made you interested in investing in this type of deal?

Timing and location. It also gave me the opportunity to help someone in need of offloading a worrisome property and make it mutually beneficial for both of us!

How did you find this deal and how did you negotiate it?

Word of mouth. Negotiations were handled by running and analysis on the BP calculator and partnering with the seller in order to get the concession I needed to make the numbers work!

How did you finance this deal?

Conventional financing using a HELOC for the down payment

How did you add value to the deal?

I did all the rehab myself to turn it into a B+ property in a B+ neighborhood in order to receive top dollar for rent. "Rentometer" has the number I am getting for rent in the 99th percentile for the area and I have yet to have a single late or missed payment!

What was the outcome?

Adding a property to my portfolio that has exploded with appreciation and added a significant amount of passive income to my annual salary