Oh hey, I did a thing awhile back

[David Van Singel]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,000
Cash invested: $20,000

I bought a cute 3 bed 1.5 bath home in the middle of the pandemic. It only needed light repairs to make it a solid rental. Previous owners were rather old and ended up taking care of the property as a whole. The biggest thing it needed was to take out the wallpaper and repaint.

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

I wanted to have my own rental property for a few years. I had said to myself in 2020 that this was going to be the year. Well, it was quite the year.

How did you finance this deal?

Initially, I was going to finance the deal through a mortgage broker. The fees on a $60K loan came out to around 10%. After consulting with family about the rate structure, I was able to secure a private money agreement for better terms.

Lessons learned? Challenges?

If possible, the closer your deal is to home, the easier it is to find the time to work on it. If it is an hour away, it's harder to justify going out there for a quick 5 minute fix. If you're remote, have some good contacts in the area that can help if there is something wrong with the property.

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

Ralph and Cassi Justiz at Spearhead Realty were very helpful in helping me find the deal.