First Investment Property

[Erin McLellan-Dawe]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $236,000
Cash invested: $30,000

We purchased this at a great time with low interest rates with a single income during the end of our second pregnancy. We had to do some upgrades to all three bathrooms and a basement wall along with paint throughout. The location has great schools and neighbors. When it was time to trade up we decided that we would hold it and rent it for an investment. So far so good. We have learned a lot since this fast paced experience and are looking to do it again....smarter.

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

It was really the opportunity we had to continue holding this property for a long term investment while having a renter pay for it.

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

We originally lived in it and did the upgrades as we lived there.

How did you finance this deal?

Traditional mortgage through a bank.

How did you add value to the deal?

Upgraded bathrooms, added a dishwasher, new washer/dryer, new heating/air conditioning, paint through inside and reinforce of basement wall.

What was the outcome?

We have a renter that was mainly interested in location to relatives and schools. The cashflow is less than ideal as we have learned but it does cash flow.

Lessons learned? Challenges?

We need to buy a lot less either with a wholesaler or another market. We are researching our next purchase and currently looking in a market about an hour away from us.

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

We did work with a local realtor as we also live in the area...we are looking into other ways of financing.