My first rental unit

[Daniel Baltazar]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $14,250

3-bedroom 2 bath single family home in Ottawa IL

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

The prices for single family homes are pretty similar in Ottawa weather they are 2 or 3 bedrooms, and you can get more in rent for a 3-bedroom house without having to save as much as I would for a multi-family while I'm just getting started as an investor

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

I found this property on the MLS. It was on the market for around 6 months so I put an offer in at $20,000 below asking price. I came up with the number by working back from what I expected to get for rent. we negotiated back and forth settling at $10,000 below asking price. That price made the profits pretty thin but it was worth it to me to get the education of the deal.

How did you finance this deal?

%15 down conventional loan

How did you add value to the deal?

minor cosmetic remodel and purchased under appraised value by $12,000

What was the outcome?

Currently rented out to a great family.

Lessons learned? Challenges?

Had to learn how to get all the legal documents, screen tenants, and efficiently collect rents. as well as a lot of knowledge about minor rehab. I settled on Azibo to handle onboarding and collecting rent, and got documents from the Bigger Pockets site.

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

I used Chris Goff, Preferred Rate Mortgage, House Doctor, and Goosehead insurance. the same team I used for my primary residence.