First rental purchased

[Stephen Reyes]

Investment Info:

Single-family residence buy & hold investment in Pensacola.

Purchase price: $175,000
Cash invested: $45,000

SFR I have an annual rental agreement with someone who is using it as an Airbnb. I did not want to invest the personal time for a short-term rental, she did not have the capital to purchase the house. It has worked well so far.

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

Supplement retirement.

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

Found the deal on Zillow. Called the listing agent, visited the house and made an offer.

How did you finance this deal?

Conventional 30 year fixed

How did you add value to the deal?

Flew by the seat of my pants

What was the outcome?

Seems to be working for now.

Lessons learned? Challenges?

Still learning how this first house will work out. As I read about the various metrics this house does not seem to measure well. The house rents for $1500 per month, cost was $175k so not even 1%.

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

The lender I worked with (Heather Bookout with American Mortgage) has been very responsive. I have made offers on several other properties and she was extremely fast at getting me pre-qual letters and she was very responsive during loan process. I have been trying to get a property in the Tampa Market. I have been working with a realtor (Corinn Pope with WHT Tampa) who has been incredible but have not yet closed a deal.