First buy and hold investment

[David Haley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $212,000
Cash invested: $45,000

1950's construction. Originally a 3/1, had been renovated the last few years by converting the carport and garage into 2 additional bedrooms and one bath, resulting in a 5/3 just north of Texas A&M University; renting at $2,250/month

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

My son attends TAMU and rather than paying someone else rent we thought it made sense to own and have others rent from us.

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

On the MLS

How did you finance this deal?

Traditional bank financing. Since he's living in the house, we put our son on the deed so it was classified as owner occupied for better terms.

How did you add value to the deal?

It's built in the 50's and was in decent shape. Had to remove a wall so that one of the bedrooms had a window.

What was the outcome?

Still own and rent. Have only turned over one of the bedrooms so far without any issues or vacancies.