First home turned into a great rental

[Zac Hales]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $165,000
Cash invested: $15,000

We bought this townhome off market and moved into it. Paint, countertops, vanities, and the home appraised 40k higher a year later allowing us to refinance to a lower interest rate AND drop PMI. Current mortgage with HOA is $1050 and its rented for $1400 to a close personal friend. Once they move out we will clear $600 a month in cash flow!

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

This was our first home and we knew it would be a great rental after we had lived there for a year.

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

A friend of mine had it under contract with the seller and I assumed the contract from him.

How did you finance this deal?

3% down conventional loan

How did you add value to the deal?

Knowing the area, I saw equity instantly and jumped at the chance.

What was the outcome?

The property has skyrocketed to nearly double what we paid.

Lessons learned? Challenges?

Backflow prevention valves cause the problem they were intended to alleviate!

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

My lender is Doug Anderson at Towne Carolinas!