First Deal Diary in Beckley, WV!

[Timothy Doenges]

Investment Info:

Single-family residence buy & hold investment in Beckley.

Purchase price: $34,000
Cash invested: $6,000

First rental property! Bought out of estate sale. Replaced all windows and floors, remodeled kitchen and bathroom.

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

This was my first deal, and I've been keeping an eye on 2/1's and 3/1's with >1,000 square feet for a while now. Saw this property was available, watched it for a while while the price was reduced, and it began to make sense numbers-wise to pull the trigger on it.

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

Found on the MLS. Saw it had been reduced several times and had high DOM so I offered below list and offer was accepted.

How did you finance this deal?

Financed with investment loan, 15% down.

How did you add value to the deal?

Replaced windows from storm to double-hung. Cut heating and power costs from $600/month to $150/month year over year.

What was the outcome?

Property is now up for rent at $700/month.

Lessons learned? Challenges?

Buying right is where highest potential for income is made, but avoiding over-rehabbing a property is where you can protect that potential for income. If you over-renovate, your equity and cash flow will both be affected, and you can't guarantee that tenants will appreciate your upgrades (and protect them) the way you would.

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

I'm an agent! If you would like to chat about investing in the Beckley area, feel free to message me on BiggerPockets!