Success of our 1st Investment Purchase

[Scott Ritch]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $170,000
Cash invested: $35,500

This was our first investment property. We bought it for $170,000 in 2018 with initial investment of $35,500. As of February 2022, we have been able to refinance it with a cash out refi and no longer have any of our own capital in the property. It is currently worth $325,000 and we have a monthly cashflow of just over $300 while also pulling an additional $35,000 on top of our original investment out.

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

This property was a client of ours. We ultimately talked through their options and they did not want to list it on the open market. We saw an opportunity and that is how we got started.

How did you finance this deal?

We used a typical conventional loan for this one.

How did you add value to the deal?

We were the agent and they didn't want to list on the open market. After bringing a few clients buy to look at the property, it didn't work for any of them and we saw an opportunity. By negotiating terms that worked for everyone, no open market showings and buying it as-is with no repair requests it was a win/win for everyone. Finding out their motivation was key, it's not always the bottom line.

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

My wife and I are both licensed agents so that is an advantage for the investors we work with as well as finding the best deals for ourselves. We are in the market daily and always looking for great properties that will work for long term investing or potentially a flip.