Here's How I Achieved Infinite Return in 20 Months Of Owning This Rental

[Jason Rash]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $63,750
Cash invested: $13,000

This was my VERY FIRST deal. Had no idea what I was oding.

Bought for 63,750 off market in Feb 2021 worth around 130K+ currently.

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

When I bought this rental in 2021, everyone was saying the RE market was about to crash. My own family members kept telling me how crazy I was. Understand, when you are trying to buy your first rental, from 1,500 miles away you need all the support you ca get, no one was supporting me except for my wife. This is the HARDEST part of investing, doing your first deal. You can read 10,000 books but you will learn exponentially more mre going through your first deal.

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

I posted on FB that I was going to start buying rental property and this guy reached out to me from high school and said he had a property he had been trying to sell. I hadn't spoken to this guy in 20 years - this is the power of social. He had just installed a new WH, New HVAC and new appliances. We did the deal with no RE agents.

How did you finance this deal?

I put 20% down/ 30 year fixed. The hardest part of the deal was finding someone who would finance 50K for 30 years and be ok with making $1.48 in profit a month.

My mortgage payment was going to be $312 and this house, by my estimate should rent for $1,050/ month - which it did.

How did you add value to the deal?

Literally did nothing. I was looking for close to turn-key as possible.

What was the outcome?

INCREDIBLE. With only putting 13K down and netting over $650/month I made my money back in about 20 months - I still own the property and it rents for $1,250 currently. Insurance and taxes have increased but Im still clearing the same amount. I've had to chaop down a massive oak that cost me about 5K to remove but other than that, not too much.

The property itself is worth about 130K -140K currently so I will be 1031 exchanging next year when rates come down to a newer property.

Lessons learned? Challenges?

While everything above is great people lower rent brings lower people problems. I will be exchanging out and purchasing something around 250K with the proceeds which will in turn bring higher rent and a better quality of tenant

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

No. I did the deal myself, all of it. We used a closing attorney to close the deal.

This was eye opening for me on the paper work side of things, at the time it was quite a bit but a wonderful lesson to learn especially being my first deal. I have used agents for all my other deals.