My first investment and its out of state

[Eugene White]

Investment Info:

Single-family residence other investment.

Purchase price: $36,000
Cash invested: $10,000

I bought this SFR in my market for 36k. Its a 3b 1 b Home with a full basement.

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

I heard this process called snowball effect from the biggerpockets podcast Brandon Turner. So i bough my first roll of the snowball with is SFR.

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

I found the deal off the MLS and i negotiated 4k off the property by asking.

How did you finance this deal?

I utilized a signature loan from a credit union in my area and purchased the property with cash. Holding cost were high but with my credit and not finding a bank that would finance the property due to the fact it was only 36k

How did you add value to the deal?

Rehabbed the kitchen and fully gut of the bathroom

What was the outcome?

By adding rehabbing the kitchen and bathroom i was able to get $1100 in rents.

Lessons learned? Challenges?

Call more banks to find out who will do loans on less valued property. I also learned to purchase the property in my personal name and then transfer it over to my business in order to refinance. It depends on what investment strategy your going to use. I learned to leverage other contractors skills when needing to get work done in a timely manner. A great way to find handyman and contractors are through your agents and at home depot pros.

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

It my first out of state investment and i worked with one of the top brokerages in the area to assure i was not taking my chances with agents who didn't know what he/she was talking about.