My first Investment Property

[David Caradonna]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $193,000
Cash invested: $20,000

This was my first investment property I purchased in 2018 in South Tampa, now one of the best markets in the country. It cash flows about $500 a month, and has appreciated around $195,000 in less than 4 years.

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

I was renting with friends so my rent was cheap. I had some money saved up and knew I wanted to do something. I knew absolutely nothing about Real Estate or investing. I just knew I wanted to utilize my money to make more.

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

One of my clients from my W2 job was a real estate agent. I told her what I was looking to do and together we searched for properties that fit that criteria. This was on the market.

How did you finance this deal?

This holds a traditional 30yr mortgage. I put down my own money as a down payment.

How did you add value to the deal?

I instantly replaced the HVAC system as we are in South Florida and it was over 10 years old. It passed inspection but it didn't look pretty.

What was the outcome?

As of today the property cash flows about $500/m and has increased about $195k-$200k. The neighborhood it's in has done extremely well as there is very little supply and a very high demand to live there.

Lessons learned? Challenges?

I had NO idea that the seller covering closing costs was even an option. I unfortunately had a real estate agent which was not very helpful or informative on anything. Not to say the seller would have covered them, but it was around $7,000 that could have been negotiated. I was also told I needed floor insurance 2 days before closing which needed to be paid in full for the year. Having an experienced real estate agent is incredibly underrated. I learned a lot.

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

Unfortunately no but lessons learned!