First Investment in long distance real estate

[Quincy Adams]

Investment Info:

Single-family residence buy & hold investment.

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

Single Family row house, Section 8 tenants paying $710 a month. 1 of 4 single family units that were part of my first purchase.

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

I was done with analysis paralysis, and decided to take action.

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

Long story, the short story is I made a new friend who like to invest in Pittsburgh and had a PM that he liked. I hadn't been able to pull the trigger on any deals because I didn't have a PM that I liked. He highly recommended his guy I flew out to Pitt to look at one deal and left with 4 accepted offers.

How did you finance this deal?

Cash out refinance on personal residence.

How did you add value to the deal?

I'm not sure how to answer this other than I brought money.

What was the outcome?

I bought the four units, with a few hiccups at first. It took about 6 months for my PM to have contractors come do a few minor issues like paint outside trim, finish floors, etc. Now that they are fully rented I cash flow $2105 per month

Lessons learned? Challenges?

Get a better contractor that is not tied to the PM, which I've done. It cost me a lot of money not having the units completed quicker.

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

Yes I did. My PM has his strengths and weaknesses but overall managers well. My contractor so far is awesome and is working on my first multi unit deal. And my realtor is very aggressive and seems to be in my corner.