Lastly, being in a Metro District this property doesn't have an HOA or additional fees. Just higher property taxes that I am also able to write off... You can't write off HOA fees! (Little tip for my fellow investors ;-)

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

I was mainly turned towards real estate investing from the passive income opportunities, like everyone right!! lol. After further investigation what grabbed my attention the most, and still does to this day, were the tax benefits from owning property. After rearranging my life to be more tax efficient this property fit perfectly for my first acquisition!

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

I found this deal the old fashioned way. Drive around different neighborhoods and finding a spot that I would be proud to own a home and supply housing. After viewing over 20 properties and neighborhoods I found the spot I wanted to stick to and find a hidden gem. After about two more months of searching mainly in that area I looked at five different houses before I put an offer in on this perfect rental home.

How did you finance this deal?

I used my own capital on this deal since it was my first one and I wanted to feel that sting/ satisfaction of gaining a property of my own. I used cash that I'd saved up for about a year or so for the down payment and other funding/ acquisition needs. Thereafter, with that knowledge I plan on forming syndications' and or working with other creative funding options for my next properties!

How did you add value to the deal?

I rented the property out once I'd satisfied the loan requirements (house hacking) and the property didn't really need anything. The BEST aspect of this acquisition though. The basement is 75-80% finished. I plan on adding a bathroom, carpet and a door in the basement to make a studio bedroom/ flex space and another full bathroom. That will make the property a 5 bed 3.5 bath in a neighborhood that averages 3 bed 2.5 bath.

What was the outcome?

My first 16 months cashflow was about $150-$200/m with long term tenants. They have since left and now I run 6 month lease terms with a new displaced tenant and their ins co is paying enough to cash flow about $1,500. After that I may stick with long term tenants again since rents in the area are supporting about a $400-$500 cashflow. That will be left up to my property managers expertise though!

Lessons learned? Challenges?

Collect as much of a damage deposit as you can. Things will be damaged! No matter how good the tenants are or how good the think they are!

Cash flowed a little over $4,500 over the past 16 months including a $2,500 damage deposit. After the tenants vacated the property I'd needed to replace the bran new carpet (face palm), clean the whole house, dryer ducts, fix landscaping and a few other issues. Collect as much upfront to get ahead of the issues!

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

I did work with an amazing agent! I would recommend him to anyone any day. Let's connect and should I not be able to help you through my real estate experiences I'd to provide an introduction and I am positive he would be happy to have a conversation and see if he can help you!