First Rental Property

[Lony Dorce]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $20,500
Cash invested: $20,500
Sale price: $30,500

Purchased as a tenanted property with rent at $500. Increased rent to $550, with $50 late fee payment. Tenant paid $600 monthly for 11 months. Sold property tenanted for $30,500.

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

I wanted to get my feet wet.

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

Found this deal on the MLS. Contacted my realtor who arranged the showing and gave me the background details. Seller was highly motivated due to a personal conflict with the tenant (knew each other prior to leasing the property to tenant). He was asking $28,900. I was told he had previously turned down an offer for $20,000, but was reconsidering it. I offered $20,500 and he accepted. Closed in 10 days.

How did you finance this deal?

Paid for this property with Cash.

How did you add value to the deal?

I increased the rent on the property.

What was the outcome?

Fantastic. After 10 1/2 months, I decided to sell the property which still had the same tenant in it. After 1 week on the market, I had an offer for 28,000. I countered at $30,500 and they accepted. Closed in 10 days.

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

My realtor, Jaeson Baltazar, is an excellent agent. I used him for the purchase and the sale. Would highly recommend for the Jacksonville, FL area.