My 1st Rental Property - Buy & Hold

[Zachary Cummings]

Investment Info:

Single-family residence buy & hold investment in Lansing.

Purchase price: $62,000
Cash invested: $22,756

Purchased home for 62k, appraised at 65k. I added a bedroom to maximize the space and rent. I plan to keep this home into retirement for cashflow.

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

Wanted to get my foot in the door to start working toward Financial Independence

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

I researched the Lansing market and found a great property manager that has a great team of real estate agents on board.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

I maximized living space and added a bedroom

What was the outcome?

We re renting for good cash flow

Lessons learned? Challenges?

So far the main lesson learned is to close on your conventional financing as early in the month as possible (vs late in the month). The reason being, you will skip your first month mortgage payment so this will give you about 70 days to have to make a mortgage payment since you aren't required to make the payment until the 15th of the month, which will give you time to do your remodel, and get the place rented without having too many holding costs, etc.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jamie Fox with Trubrook realty in Lansing, MI is very knowledgeable and works very hard for his investors. He found me 2 great properties within a 45 day window.