Soldier's First Investment Property while deployed

[Christian Wamsley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,500

Cash invested: $33,000

Single Family rental in Martinez, GA. 4 bed 1 bath that rents for $1,000.

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

The location. It was located in a great school district and did not need a lot of work and asking price was 92,500.

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

This deal was listed on the MLS. Came to me through my realtor.

How did you finance this deal?

Conventual Loan with 16% down and had the seller pay half of the closing cost.

How did you add value to the deal?

Fixed the other half the roof, added hardwood floors throughout, paint, updated bathroom, and new appliances.

What was the outcome?

Received my first income from the property with a family of four renting at $1000 a month.

Backstory:

I am currently an active military member serving overseas. My family resides in the Augusta Area, GA. While my wife is very busy managing the house, our four kids, and day job. I figure it would be a fabulous idea to get into real estate investment. My wife is supportive of my dream but ensures to let me know that I am on my own and anything I do that would put their livelihood in danger I will surely regret it. This all started from reading the famous book “Rich Dad Poor Dad” and meeting with likeminded people, which lead me here to you and the BP community.

I started off with 30K in cash and a dream to buy and hold an SFR or MFR. My strategy was finding a property where I will make a least $100 a month cash flow and 12% ROI. My SFR criteria was a 2-3 Bedroom with 1-2 Bath that was at least 1000sqft. I preferred a ranch style with brick siding for easier maintenance. After about four months of working with my realtor and wholesalers and scouring realtor.com and Zillow.com, I found my property. It is a 4/1 ranch style brick home in a good neighborhood and school district. It was listed for 92,500 and purchase it using a conventional loan for 88,500 with the seller paying 3,500 for repair and closing cost, which in my mind I purchase the home for 85,000. The property needed some roof work, bathroom repair, new floor, paint, and minor work on the outside. My down payment came out to be 16,555 and about 12,265 in rehab cost. Add in the home inspection, I am in for this property for a little of over 30,000.

Here is the list of unexpected cost due to lack of experience.

Home Inspection: $276.75

Termite Inspection: $45

Upfront Home Appraisal: $700

Three months of mortgage payments.

Feedback:

The contractor did really great work, but I feel more communication between us would be better. As in letting me know the new oven needs a new cord as well or the ceiling fan is missing a blade.

Property Manager, I cannot ask for a better one.

Realtor, not impress at first but did save me from making a grave error at closing

The lender, not impress nor will use for the next investment.

[Sean Witherspoon]

Congrats.  I also live in the Augusta area.  I am looking to buy my first investment over the next month or 2.