First Rental Property

[Brad Brammer]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,500
Cash invested: $5,000

Wanted to build another pillar for early retirement to compliment stock market investing. Found a cheap place, spent a little money to rehab and got a tenant in quickly.

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

Passive Income... it was my first deal and I was looking for the cheapest property that I could find with a moderate rehab.

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

MLS... After a second walk-thru, more discoveries = more negotiation.

How did you finance this deal?

Unsecured personal loan

How did you add value to the deal?

Major rehab components consisted of:
-new furnace and duct work
-turned second living area into a 3rd bedroom
-minor electrical
-replace broken water lines

What was the outcome?

-3rd bedroom increased rent by $100
-rehab lasted 4 weeks tenant in on 5th week

Lessons learned? Challenges?

-Hardest part was just getting started - overcame fears
-Replacing waterlines in a crawl space is not fun... Now I steer clear of crawl space properties if possible.
-Overwhelmed with tenant applications via social media. Limit use of social media to market properties.