First Property Home to Rental

[Patrick Jackson]

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $10,000
Cash invested: $25,000

Bought the house as a home to use while serving in the military. Lived in it after getting out of the military and then built a place on some acreage. Rented the house out afterwards to start the journey as a landlord.

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

Wanted a place to stay in should we need it. Not our parents' or siblings' place

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

My dad found the deal when somebody wanted a quick sale. Distant family friend that refused to sell to anyone so we were able to close the deal despite taking 2 months to finance/close and other cash offers came in.

How did you finance this deal?

Local bank with a rehab loan included.

How did you add value to the deal?

Floors were trash, poured concrete floors inside and we added central HVAC. Estimated value at ~$60k.

What was the outcome?

A place to call home and a rental that adds value to our lives.

Lessons learned? Challenges?

Real estate serves as a good investment vehicle despite the seemingly waste of money. 7 years we owned the home and only stayed in it 2 months a year and it still appreciated more than we spent on it.

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

Yes. Lender was a real estate investor and willing to support a newbie.

[Steven Foster Wilson]

Quote from @Doug Spence:

@Patrick Jackson Congrats! Thanks for sharing the details of your first property. I have a few questions, the answers to which will likely help other investors as they learn about your experience:

How much are you charging for rent? Do you self manage?

What were the terms of your rehab loan? Did the hard money loan come from the bank as well or was that separate financing from a hard money lender? (HML)

Where is this property located?

What will your next deal be and how will you apply what you learned on this one?

Congrats again and keep us updated on your journey!

 Congratulations Patrick! I hope this was just the first of many for you.