First home purchased, turned into first rental

[Austin Wayland]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $285,000
Cash invested: $57,000

First rental. Lived in it for 2 years. Bought new home and had it rented out in a day.

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

Tired of renting so decided to buy our first home. Bought well under what we could afford with the plan of living in it and renting it out in the future. Wanted to generate cash flow.

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

We bought from a builder that was in phase 1 of their development. We were the first single family home to move in.

How did you finance this deal?

Mortgage through builder with all their closing incentives.

How did you add value to the deal?

Built a fence, did small things to the inside. Made it look less like a "new build"

What was the outcome?

Outcome has been great. We are able to generate $700/mo cash flow. Using those funds to help purchase or next investment property.

Lessons learned? Challenges?

We are currently managing the property ourselves. Learned that when we add another 1 or 2 properties to our portfolio that we might need to look into a property management company.

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

Yes, our agent was awesome. He has been in the business in the area for 30+ years so he knew the ins and outs of the market.