First Property Purchase

[Amy Larsen]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $143,500
Cash invested: $7,175

My first house purchase. House hacked by renting out a bedroom to my friend.

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

House-haking made it a cheaper option than renting!

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

I knew nothing about real estate at the time, went searching on Zillow and clicked on the first Realtor that came up. I got lucky and he knew exactly how to negotiate on my behalf.

How did you finance this deal?

Owner-occupied conventional loan and used the cash I had saved up from my W-2 job for my closing costs and down payment.

How did you add value to the deal?

Over the couple years of living in the property I remodeled both bathrooms, replaced the roof, and properly maintained the home.

What was the outcome?

I bought a terrific home at fair-market value. I was able to save money by collecting rent from my friend rather than have to pay rent to an apartment complex.

Lessons learned? Challenges?

This was my first real estate experience and I got a glimpse of what the entire process entailed from beginning to end.

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

Tom White, Realtor with Boulevard Realty
Cameron Hooten, Chief Inspector with CPI Inspectors
Jeff Lucas, Lender with Commerce Bank
Brian Dillon, Inspector and Treatment with Dog Gone Mold, Inc.
Michael Smith, Property Manager with Renters Warehouse
Ben Gilmore, Insurance Agent with GrainBelt Insurance, LLC

[Steve Vaughan]

Well done, Amy!