Living in your next rental

[Seth Hobbs]

Investment Info:

Single-family residence buy & hold investment in Conroe.

Purchase price: $240,000
Cash invested: $26,000

Initially this home was a personal residence, I have since rented it out, for another brand new home (which I get great Realtor discounts). The Goal is to rinse and repeat this for the next few years to organically grow the rental portfolio on top of the actual investment strategy. It being brand new in a great community offers less maintenance and appreciation to come!

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

It is in a great neighborhood and I knew after I moved I could rent it easily and it shows great room for appreciation along with decent cash flow. And I needed somewhere to live. I also bought it from the builder and being a Realtor and a good partner of theirs, I got a great deal.

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

I found it on the MLS and negotiated it about 15,000 under listed price.

How did you finance this deal?

I financed it conventionally with 10% down.

How did you add value to the deal?

I added value by purchasing it at a discount so I have built in equity. It is more of an appreciate play than a value add since it was a new home.

What was the outcome?

It cash flows 250 a month for me and should do so for several years to come!

Lessons learned? Challenges?

This was a pretty straight forward deal.

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

I am a Realtor