Rental Property #1 - Pensacola

[Alexander Flores]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $72,000
Cash invested: $26,000

My first rental property was a total rehab. The property was purchased using a hard money lender in the spring of 2016. Read the full details here, https://financiallyfreemillennial.com/rental-property-1-pensacola/
Within a year we had all of our initial investment and own money out of the property.

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

I just wanted to get my feet wet in REI!

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

I found it myself on Redfin and gave a low ball offer, the bank countered a little higher and we accepted. The numbers made sense.

How did you finance this deal?

A hard money lender.

How did you add value to the deal?

We gutted the entire property to the studs and redid all of the electrical, plumbing and the entire home.

What was the outcome?

We have had a tenant in the property for 2.5 years and her lease is still good for another 2.5 years. She hopes to buy the property after her lease is up.
Currently, there is $50,000 in equity on the property and it cash flows $500 a month.

Lessons learned? Challenges?

Sometimes the best thing to do in life is to just jump in feet first. You will never know unless you try. People will continuously give their opinion but at the end of the day only your actions matter.

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

Nope.