My first home/investment property in real estate

[Andrew Reising]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $40,000

I bought a home for myself within my means with the intention of saving money on rent and getting the home to pay for itself through room rentals, also to investigate the model of real estate rentals I wanted to pursue to see if it would be feasible. This was incredibly easy to do. I rented my three extra rooms out to amazing tenants within a week of posting ads for $750/month each with a months rent deposit.

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

It was a good way for me to begin pursuing real estate, get some experience, and there was an overlap in what I wanted for myself personally.

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

Zillow, I used an agent and a loan for a primary residence. Then I used Facebook marketplace and groups to find tenants.

How did you finance this deal?

Cardinal Financial as a first time home buyer

How did you add value to the deal?

I refinished the floors myself and added a security camera system and coded locks to the home.

What was the outcome?

My home pays for itself as well as a portion of the utilities.

Lessons learned? Challenges?

It all went perfect. In order to generate passive income though, I need a second property with more rooms, ideally with a lower cost to room ratio.

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

Yes, I worked with agents and lenders I can recommend. I am currently in the process pursuing partnerships that may be able to finance me at half market rate.