Our first rent house

[Casey Murphy]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $105,000
Cash invested: $27,000

I used my heloc to fund the down payment and some cash from a land sale to have the house painted. Painting the house was the only expensive item in renovating the property. I initially posted it for rent at 1100/month and had multiple people interested. In hindsight I may have undercut the rent by 100 or so. Our tenant expressed an interest in me providing appliances. In all we spent 1500 on refrigerator, washer, and dryer and in exchange I increased our tenants rent to 1200/month.

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

It’s hard to find something that will cash flow and this house cash flows around 350. It also didn’t require a large renovation.

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

I found it on the MLS listed for 11500. I offered 95000. They countered with 110000. I countered with 105000 and the seller paying closing. We agreed on 105000, I paid my closing costs.

How did you finance this deal?

20 year Conventional loan and I used my Heloc to pay the down payment and closing.

How did you add value to the deal?

I had it painted. Added door stops. Had the cast iron tub resurfaced. Added fridge, washer, and dryer.

What was the outcome?

It rented quickly. The tenant brought the deposit, pet fee, and 3 months rent up front.

Lessons learned? Challenges?

I probably could have posted it for rent a lot sooner. I was very hesitant. I tend to drag my feet when I’m doing something I’ve never done before.

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

I am a licensed agent in Louisiana so I represented myself. I got paid almost $2200 to buy this house which i thought was very cool.