First rental property

[David W McFarland IV]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $8,900
Cash invested: $8,900

This is a two story single family home. Two bedrooms on bath. Fenced in yard with a small shed for storage.

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

I've been interested in real estate since I was in my early teens and this opportunity just made sense to jump in.

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

This is my first deal. The property owner was behind on taxes and owed me money. I offered to help him out of a tight situation by exchanging the house for the debt and letting me take care of the tax issues. Rented at $600 a month.

How did you finance this deal?

Cash

What was the outcome?

I received an 80% return on investment the first year.

Lessons learned? Challenges?

Good deals can be found that benefit both sides. Don't overcomplicate things in your mind and just take action.