First rental Property Purchase

[Trent Barga]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $75,000

Came across my first property prospecting for sellers as I am a Realtor. This deal was so cheap I weighed the option if I sold it to my investor how much I WOULDN'T make. Made them an offer which they tentatively accepted then a week later got it under contract behind my back. Luckily that deal fell apart and I was able to close. Borrowed $30k from the parents and put $10k in myself. Took me 8 months to get it ready but learned a lot

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

It was a really low cost of entry and knew it would be worth double when I was done.

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

Prospecting for my real estate business. Tried to be cheap and offered them $2k less ($38k) loss the deal then got it back and purcahsed at their price of $40k.

How did you finance this deal?

Borrowed cash from my parents (private money) then $10k of my own. Rehabbed it as time went on.

How did you add value to the deal?

Completely rehabbed the property and time in market helped.

What was the outcome?

Now have an asset around $180-$195k with $75k invested and rents currently at $1500/month

Lessons learned? Challenges?

Don't be cheap.

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

Just myself.