Investment Property #1 - Check!

[Brandon Holman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $39,000

This is my first investment property!

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

We wanted more property for our family and extended family and I knew I could use it as an STR to offset costs and pretty much give us a place that pays for itself while getting some tax benefits, equity, and possible refinance in the future. Plus, with all the property, I plan to land hack and add some value (glamping anyone? ;) ).

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

My neighbor knew that we wanted to buy their place once they were ready to sell. So when they were ready to move, we were ready to buy!

How did you finance this deal?

Second home loan - only 10% down!

How did you add value to the deal?

I renovated the inside and outside. Not major renovations, just a lot of refresh. I removed popcorn ceilings, painted all walls (inside and out), replaced and changed out light fixtures (inside and outside), furnished the entire home, and created a fun outdoor space (fire pit, grill, picnic area, outdoor games - including wiffle ball!).

What was the outcome?

It has been great so far! Paying for itself just like we hoped!

Lessons learned? Challenges?

Renovations by yourself take a really... long... time! My father in-law did help with some painting and removing some of the popcorn ceiling. But man, I didn't think painting and all the landscaping would take as long as it did. I started the process in March and didn't finish until September!

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

Honesty, the lender we used was kind of difficult. So I am not going to include them here. And as far as RE agents, I was one at the time of this purchase :). Now I just do referrals.