First Investment Property

[Luca Mormina]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $54,000
Cash invested: $12,000

My inaugural venture into real estate investing was a strategic buy-and-hold, and I'm proud to share that it's currently generating a steady cash flow. This was my first taste of what is possible being an investor within real estate and gave me prospective of what I could potentially scale to.

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

By strategically acquiring and managing properties, I aim to create a portfolio that generates consistent income streams, allowing for long-term financial security and freedom.

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

My first deal? Let's just say I dove in headfirst without all the know-how. But you know what they say, sometimes the best lessons come from jumping in and figuring it out along the way. I firmly believe in learning by doing, even if it means making a few mistakes along the road.

How did you finance this deal?

I secured financing for my first property through a conventional 30-year fixed-rate loan, securing a favorable interest rate for stable and predictable long-term payments.

How did you add value to the deal?

To assess the viability of this deal, I utilized comparable property sales (comps) and projected potential cash flow through a profit and loss analysis (P&L). This method allowed me to arrive at a favorable cash-on-cash return, ensuring a sound investment decision.

What was the outcome?

Having achieved a positive outcome with my first investment, I'm now eagerly preparing to close on my next investment property. Excited to continue building my portfolio!

Lessons learned? Challenges?

Patience pays off, but I've also realized that letting money be the sole reason for passing up a deal that makes long-term financial sense isn't wise. It's about finding that balance between patience and seizing the right opportunities.