First LTR Property

[Anthony F.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Sale price: $105,000

I purchased the property as my primary residence with a one bedroom above garage apartment. I did LTR of the apartment until I moved in 2014. I then LTRed the property until 2022, renovated it and sold.

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

Rental property income to pay primary residence mortgage.

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

Drove by the property listed with real estate agent.

How did you finance this deal?

First time home buyer mortgage.

How did you add value to the deal?

Garage apartment on the property.

What was the outcome?

Moved out of the area and sold the property after renovations for a profit.

Lessons learned? Challenges?

Land lording, locating tenants, collecting rent, property depreciation. COVID made it impossible to evict tenants that refused to pay. Ended in 1 year without payment, eviction, property damage, insurance claim to cover the renovations and sold.