Turning our first home into a CASHFLOW Investment!

[Trenton Lukenbill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $20,000

This was my first home for myself and my soon to be wife. After living here for nearly 3 years, we found out we were expecting and decided we wanted more space to raise our growing family. So we turned this fairly new, 20 year old home, into an investment. It is a 3B/2B that produces great Cashflow to start our investing career in Real Estate.

(This is my first post on here...YIKES! Hopefully this is a great place to start :) )

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

Seeing the opportunity to create cashflow for the bigger plan in my investment career. I saw no point in cashing in on equity in a growing market when I knew I could easily find a tenant and make more by possible appreciation, with the cashflow, and tax breaks the home would offer me.

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

It was my first home, purchased on a USDA loan during a good time for the market in my area.

How did you finance this deal?

Lending

How did you add value to the deal?

Simple touch up work, paint, landscaping, re-using the old cabinets by sanding them and staining them for a more modern and neutral look.

What was the outcome?

Great cashflow and a great looking property.

Lessons learned? Challenges?

The urgency of getting a property ready for a tenant quickly, so you are not losing money by holding onto it.

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

Being my first property for investing, and having a lot of things going on at the time, I decided to let a property manager take this one for me. I recommend interviewing more than one manager. This was the third manager I had let come to the property and who I felt ACTUALLY understood our market. The previous two I met with I personally felt were estimating the rental income to be way too low and tried to tell me what to do with MY property. The PM I let manage for me, just clicked with me.