First Investment Property!

[Gary Meinecke]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $207,500
Cash invested: $51,300

Single family home currently a long term rental.

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

Primary goal is assets and income at retirement. Secondary goal is monthly cash flow. I wanted to start with a rental home and now I am pursuing fix and flips.

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

My sister in law is a real estate agent in the town we purchased this home in. It is in a college town about 2 hours from our primary home. Our original intent was to lease to college students. The house was listed for $215,000 and had been under contract but then came back on the market. We offered $200,000. They countered at $207,500 and we accepted. After the inspection we got an additional $1,000 to go towards painting the outside.

How did you finance this deal?

We put 20% down and financed the rest through a 30 yr conventional loan.

How did you add value to the deal?

Negotiating the price on the house itself and shopping around for our loan. The original bank we applied at wanted $18,000 in closing costs. By shopping around we got closing costs down to $11,500 and .05% off of the interest rate.

What was the outcome?

We purchased the house and closed on April 14th, 2023. We had renters in place by May 01, 2023.

Lessons learned? Challenges?

Shop around for loans. DO NOT take the terms of the first loan offer. When banks compete you win. Same with insurance. The main lesson I learned was ‘just do it’. There were a lot of things I didn’t know and that could have kept me from moving forward. But I just asked questions and took advice from people who were further along in the process than me.

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

Yes. Christy Meinecke is an excellent real estate agent serving the Brown County area in Texas.