FIrst rental in 2010

[Patrick J Kelly]

Investment Info:

Single-family residence buy & hold investment in Lexington.

Purchase price: $94,000
Cash invested: $18,800

Bought this property from HUD. Modest amount of renovations and rented it quit easily. Tenants from 2010 are still in the home.

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

I felt like with low interest rates and a lot of supply, this would be a good time to start.

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

Foreclosure website

How did you finance this deal?

HELOC loan on my primary residence.

How did you add value to the deal?

I did a lot of renovations myself.

What was the outcome?

The tenants that moved in are still occupying the house 8 years later.

Lessons learned? Challenges?

Don't start too low on rent. It hard to raise rents on nice hardworking people that pay on time.

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

Local agent Brent Frederick