First-time Home Buyer, First-time Investor, Licensed Realtor

[Blake Bratcher]

Investment Info:

Single-family residence buy & hold investment in Salt Lake City.

Purchase price: $239,000
Cash invested: $123,000

My first home purchase I made with intent to eventually turn into my first investment. Proximity to downtown Salt Lake City, reviewed property value and rental rate increases in zip code from last 5 years, turned the equity around quickly to obtain a HELOC and complete refresh work ourselves. Kept in mind to not renovate out of the neighborhood and market it professionally (photography, staging, etc.) when finding tenants. Purchased floor-model appliances, saving every bit of $ we could!

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

We didn't want too much house from the get-go, yet wanted a single family home with no rental restrictions. We purchased knowing it would be a property we paid off in full eventually. The big-ticket items had already been completed (new roof, HVAC) and as first-time homebuyers, this "project" was more digestible than others we had seen. Our agent also advise us on the property value increases in the last 5 years for this zip code - made the decision much easier, being very numbers driven.

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

Working with a licensed Realtor - enjoyed the process so much that I also became a Realtor and my partner became a Mortgage Lender, ha!

How did you finance this deal?

Conventional. Took out a HELOC at lower interest rate (plus a one-year special promo of 1.99% fixed) to refresh the main level and start renovations on basement apartment.

How did you add value to the deal?

Kitchen and primary bathroom refresh. Working on finishing the separate basement apartment currently.

What was the outcome?

Main level has been successfully rented out and is now professionally managed.

Lessons learned? Challenges?

Doing the work ourselves to the main level was... a total beast. We obtained estimates from licensed professionals to compare before starting, allocating HELOC funds to things we had to hire out. A big challenge was sourcing materials for items we were doing ourselves, due to COVID delays and significant price increases. Had to be patient to find the right things, despite working against a HELOC promo deadline.