First Rental property cash flow investment

[Vari Pat]

Investment Info:

Townhouse buy & hold investment in Jessieville.

Purchase price: $130,000
Cash invested: $15,000

3bed 2.5 bath in a gated and surveilled community.

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

At the time I was looking to get involved in wholesaling and make fast cash to do rehabs. But once I viewed the property I figured it would make sense to buy and hold. 2 years later and excellent tenants have made it a great cash flow.

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

I found this deal through a realtor that was introduced to me by a relative. At the time I didn’t have much knowledge of negotiations so I relied heavily on my realtor. I told her exactly what I was looking for and she gave me tips along the way.

How did you finance this deal?

I used a conventional loan for this deal.

How did you add value to the deal?

In negotiations, I got the previous owners to fix the roof, hvac, and to add new carpeting. Meanwhile I took care of minor upgrades such as new vinyl flooring, porch material, and rodent barrier protection for the home.

What was the outcome?

No complaints other than a few appliance issues here and there. Tenants have been great.

Lessons learned? Challenges?

In the future I will most likely look for homes without HOA's as well as find alternative ways to finance projects and grow my portfolio.