Fairbanks Av Buy-N-Hold
Very first investment – a 4 unit house, 2bd/1ba each. Purchase from the open market. This was in the ‘C’ category, with all rented. It was producing great cashflow. Hold time was about 13 months.
Buy-N-Hold Details
| Property City: | Sacramento |
| Property State: | CA |
| Purchase Price: | $134,000 |
| Repair Costs | Self Funded |
| Holding Costs: | Self Funded |
| Sale Price: | $175,000 |
| Gross Profit: $30,000 | |
Project Details
Financing Details
Funded with 25% down-payment from personal HELOC and 75% from bank loan. With very good positive cashflow, this property self-funded the holding costs.
Rehab Details
This was not rehabbed. It required day-to-day maintenance and during tentant transitions we minor upgrades.
Finding the Buyer
This was listed on the MLS. This buyer came-in with all cash, smooth sale.
Retrospections and lessons learned
When dealing with rentals in ‘C’ category neighborhood, one needs to be aware and be prepared to manage the day-to-day situations.
