Rural Oregon First Home turned Rental property

[Marie Merkley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $110,000
Cash invested: $5,000

Having been a Realtor for several years (still renting at the time) my husband and I finally pulled the trigger on our first home that needed some serious "updates". But we couldn't stand the thought of paying someone else's mortgage any longer. Plus at the time the we were able to lock in a 3.8% interest rate on the $110k purchase price that came out to $760/month! Fast forward 3 years after new floors and paint spruced the place up quite a bit- and we are renting it out for $1100 / month!

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

We wanted to own our first home!

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

On the MLS. I represent us, being a Realtor and negotiated $110k sale price at a $124k asking price.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Replaced old laminate and disgusting carpets with modern looking LVP flooring and painted the interior a modern darker grey.

What was the outcome?

Outcome has been great!

Lessons learned? Challenges?

Since all homes in our small town of Bonanza are on their own separate wells, I underestimated the cost of "well issues" and wish we had been more disciplined to leave the Cashflow of the property untouched. Figured out that the Online Service "STESSA" is an invaluable tool that allows our tenants to pay rent online and allows us to earn 4.5% APY on any amount that is in that checking account.

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

Myself 😄!