First out of state investment

[Andrew Trevino]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $89,000
Cash invested: $22,000

Small SFH 1000 sq ft
2/1 with spacious lot

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

I'm from San Antonio and currently have a primary residence in SA and another rental here as well. I wanted to venture out and try my hand at out of state investing. I researched and found the Birmingham market to have strong cash flow with a lower price of entry.

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

I actually used "Roofstock" for my first out of state purchase. I offered full asking price and once the property was under contract there were negotiations that came out of the inspection period.

How did you finance this deal?

Conventional 20% bank loan

Lessons learned? Challenges?

Still very new to the out of state (Alabama) investing game. I was able to look into three different PMs and decided on one who have been very responsive during the early stages of relationship. Also, within 4 months of closing I was notified by the PM that the HVAC had gone out. I knew from the inspection that the HVAC was older and now was needing replacement. Luckily, I had already budgeted for such expense.