Single Family Rental

[Derek Rankin]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000

This home was my primary residence for several years, and I kept it as a rental when we moved. Got it for $0 down and negotiated for the sellers to pay my closing costs. Has cash flowed $300/month for two years.

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

cash flow

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

MLS - Negotiated so sellers paid closing costs. $0 out of pocket at closing.

How did you finance this deal?

VA loan (primary residence)

How did you add value to the deal?

When I moved out, I installed new flooring, water heater and stove.

What was the outcome?

The property has appreciated significantly since I purchased it. Due to this, my return on equity is low. I still hold this property, but may sell it to invest in other properties.

Lessons learned? Challenges?

Screening tenants is one of the most important factors in the success of a deal. I waited for the right tenant, instead of taking the first applicant that passed a credit check. I have been lucky that my tenant has never been late on rent, even during COVID lockdowns.