first home purchase now brings in $1200 monthly cashflow

[Chris Morris]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $754,500
Cash invested: $220,000

We purchased a single family home to live in. We then purchased another single family home to live in, renovated the first place, and rented out the first place. I manage the property myself and we get $1200 monthly cash flow. I'm now looking to invest in other ways and have a lot to research: multifamily, short-term rentals, syndicates.

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

We wanted to live in a single family home.

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

We found it on Redfin and did standard negotiating.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

Renovated the home: new floors and paint, new faucets, lots of cosmetic work. Entirely new front and backyard.

What was the outcome?

$1200 monthly cash flow, with high rent growth.

Lessons learned? Challenges?

Renovating is a decent amount of work! Managing a property post-renovation goes through swings of effort, though most of the effort is front loaded.

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

Bob Herrera was our realtor. He was nice.

[Chad McMahan]

Hi Chris!
Firstly, HUGE congrats on getting started. That's is amazing- big kudos on taking the leap.

Based on the numbers, I'm estimating you are getting approx 3% cash on cash return for your investment. IF it interests you, 98% of what I do is STR specialization and my clients receive 15%-30% cash on cash returns in Sedona. If that interests you, just holler.

Beyond that, good luck and keep it up!