Very first Rental Investment!
Investment Info:
Condo buy & hold investment.
Purchase price: $31,000
Cash invested: $31,000
Very first investment - paid all cash for this investment. Was such a proud owner of this condo that we still receive rental income till date. Its was initially a very suburban location which over the years has become prime to many shops, restaurants, schools and IT companies. Currently Market value of this condo is close to $100k.
What made you interested in investing in this type of deal?
I come from a family of landlords and real estate has always been valued as a primary path to wealth and financial freedom. It was a no-brainer to get into our first investment with all the savings we had from our IT jobs.
How did you find this deal and how did you negotiate it?
My family worked with an agent to look for properties in the selected area that my father had known is going to become a prime location in the next 5 years. My spouse negotiated with the builder on the phone and it was easy to ask for a lower price since the area was still suburban at that time.
How did you finance this deal?
All cash savings from our day IT Jobs
How did you add value to the deal?
Rehabbed kitchen and bathrooms to attract stable tenants
What was the outcome?
Still renting at market rate
Lessons learned? Challenges?
Working with contractors for the first time - don't pay the contractors until the work is done, very big lesson for life!