Our first rental property!!

[Patrick Klepper]

Investment Info:

Single-family residence buy & hold investment in Knoxville.

Purchase price: $83,000
Cash invested: $4,000

Our first rental property!! A nice 2/1, 980sqft in older part of town but is making a comeback. We did a cash out refinance on primary home to use as down payment on this property. Purchase price of $83k, $17K down, then approximately $4k in repairs/improvements. Secured tenants moving in from out of state last week for $900 a month which will yield a ~$400 a month cash flow. Want to do another one next year using hard money/private lender and the BRRR method.

How did you finance this deal?

Traditional 80/20 loan.

Lessons learned? Challenges?

I'm a very handy guy but I quickly learned that spending all my free time working over several weeks/months on repairing/improving rental properties is not my thing. On the next one I will definitely be taking a step back from a lot of the hands on work and let a contractor handle it. I love the process, i.e finding fixer uppers and seeing the end result, but from a project management standpoint.