Titusville Buy and Hold Single Family House

[Reagan Clo]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $115,000
Cash invested: $12,000

This was a house I purchased after renting in Florida for a year. It was my first property and my primary residence for 3 years. I rented it in December of 2023 so that I could move into a duplex and house hack it. I rent it for $1800/month. After expenses, it cashflows me around $350. I plan to keep it as a long term rental.

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

I had been renting for a year and my parents convinced me to buy a house to build up equity.

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

I used an agent who helped show me around several neighborhoods near my work. Since this was my first ever real estate deal, the agent walked me through everything.

How did you finance this deal?

My parents brought the down payment, while I paid the closing costs. The loan was a normal 20% down mortgage. Since this was purchased during the Covid-19 pandemic, the price was much lower than other houses in the neighborhood.

How did you add value to the deal?

There was some minor damage to the ceiling and the AC vents. I ended up paying someone to fix these problems. When I went to rent the house out, I kept the house fully furnished, which increased the interest.

What was the outcome?

The outcome is that I have fantastic tenants, and a cashflow producing property that has helped propel me in my investing journey. It was also a great starter home and helped me take my first steps into real estate investing.

Lessons learned? Challenges?

Because I bought it so low, it really showed me how important the buying portion of a property is. Even when looking at a long term investment, having the property produce cashflow immediately is amazing. I also learned to keep reserves. The closing costs were most of what I had at the time. If I had spent my money on frivolous things, then there could have been a chance that I didn't get the property.

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

I worked with a real estate agent that was recommended to me from my aunt and uncle who also purchased a house in Florida. Her name is Kelly Walen.