First Rental Investment Property

[Jennifer Long]

Investment Info:

Single-family residence buy & hold investment in Augusta.

Purchase price: $85,000
Cash invested: $5,000

4b/2ba 1860 sq ft brick home

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

Browsed Zillow and driving around the city looking for properties. Viewed about 50 properties before finding this one and it made the most sense numbers wise.

How did you finance this deal?

Conventional loan with 20% down which was a little over $21,000. Did all the repairs with cash and it ended up being about $5,000 total. Mortgage payment is $545 and it rents for $1000

How did you add value to the deal?

Previous owner had partially turned garage into bedroom but was unlivable at purchase time. I finished it which added 400 more square feet. I also made a few cosmetic updates to the rest of the house.

What was the outcome?

Property was rented a week after being listed and cash flows $400 a month

Lessons learned? Challenges?

I learned that I need to hire professionals. I went in thinking all it needed was a little paint and that I could handle it while working a 9-5. I was way in over my head and exhausted by the end of it. It took me four weeks longer than if I had hired somebody.

[Jennifer Long]

@Daniel Thomas, from my understanding so far, I have to occupy the property for at least a year before I can refinance out of the VA loan. I got stationed here about a year and a half ago and have been renting so this fourplex will actually save me about $700 a month since the other three tenants' rent will pay the mortgage.