Our first investment property

[Alina McCabe]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $267,500
Cash invested: $10,000

We bought this home as our primary residence with an FHA loan. We knew it would be a great rental once we were ready to buy our next home. We are about to close on our second home and this property is now rented for incredible cashflow!

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

Low down payment since we bought with an FHA loan in a neighborhood with great rental potential.

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

Found it on MLS and negotiated in a portion of our closing costs.

How did you finance this deal?

FHA loan

How did you add value to the deal?

New flooring and paint throughout

What was the outcome?

Cash-flowing $656/mo after all expenses are paid (management fees, etc.)

Lessons learned? Challenges?

We bought when we felt like we were at the top of the sellers market. Interest rates were still very low at the time. Thanks to rent values being on the rise we rented our home for much more than we had originally anticipated.

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

I am the agent however I have a network of lenders, property managers, attorneys and commercial agents in the area.