New Build purchase to live in then rent after a year.

[Jacob Scholes]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $450,000
Cash invested: $5,000

Purchased this home to live in, then rented it and moved out just over a year later, this is my second deal like this, according to Zillow I owe about what Zillow says its worth but I got it at a good rate, although it was at the peak of real estate right before everything dropped and rates started increasing. I'd probably loose money if I had to sell, but I don't intend to and I'm not loosing money on it now. I wish I could edit it but it probably came out to 15,000 total cash invested to get the place in a good place to rent, 5,000 was just the initial amount we put towards the loan.

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

I like that new builds don't require a lot of maintenance (although we had to put in a yard which was more than I expected). I also like that these newer homes attract quality tenants, I may be lucky but haven't had any issues with any of my tenants in these types of homes (yet).

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

I worked through a real estate agent that I trust and we got a deal that worked out.

How did you finance this deal?

VA loan, very close to no money down, but we did pay a little out of pocket to cover

How did you add value to the deal?

being a new build we had to add some basics, like blinds and a yard (including a sprinkler system that I installed myself, I learned a lot there)

What was the outcome?

So far we are cash flowing and I am optimistic that the market is going in a good direction

Lessons learned? Challenges?

I learned that I like newer builds, they weren't overly hard to put tenants in, but i did learn that I need to budget more for landscaping up front if its a newly built home.

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

Jacob Thurston from Shadow Mountain realty was great.