Great First Property

[Brigham Pyron]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $18,000
Cash invested: $3,000

This is a fee simple, no HOA, townhouse bought during the depth of the RE crisis in 2010. It was an agent/investor selling as a short sale already approved by the bank. I picked it up and did some minor fix up such as paint, small plumbing repair and such. The last lease (Section 8) was $924 furnished and next month it will be going for $1100. I like it for a $21k property.

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

As I got started trying to find something in earnest, I'd talk with a lot of agents. One told me in no uncertain terms that I couldn't find anything for even near my $25,000 budget. So naturally, I found this townhouse for $18k. Also, you've got to look out for yourself. There were problems right before closing that my agent expected I'd eat an expense that was in the contract on the sellers side. I wouldn't budge since I had a contract with the contribution. The agents dug in their pockets.

How did you finance this deal?

I got $15,000 from a relative, $3000 from my account, and had the loan paid in 3 years still with positive cash flow.

How did you add value to the deal?

Just a little paint, plumbing, carpet cleaning, and a couple of new (used) appliances.

What was the outcome?

Rents of $700 right away, then $750, $924 recently, and now $1100. Even with some vacancies (caused only by me), I've taken in around $60k in rents and have a property valued about $75,000.

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

I worked with an agent after I found a property. This was before I got my license.