First Buy and Hold - Learning A Lot!

[Dustin Lunceford]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $132,000
Cash invested: $30,585

This house is a small 2/2. It is on a quiet street in a highly desirable area due to desirable school district. We inherited tenants and self-managed. We are learning a lot. The tenants have moved out, and we are working on getting it turned over and re-rented. I'll set a reminder to update in a few months.

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

Cash flow. Earning income every month, and building that amount to an level of financial independence!

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

I found it by cold calling absentee owners. We negotiated person to person over the phone.

How did you finance this deal?

I financed it with a traditional bank on a 30 year note with 20% down.

How did you add value to the deal?

The biggest value add is bringing the rent to market rent.

What was the outcome?

We have cashed flowed a few months. We plan to have it rented by the end of the year with increased cash flow.

Lessons learned? Challenges?

Get an inspection! We are dealing with HVAC issues that we would have found with better due diligence. And get automatic transfer orders set up with the utility companies so nothing gets cut off.

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

I am an agent and worked the process myself. I am probably going to start using a property manager. Bo Smith with NextHome will by my manager!