My First Rental Property!!

[Ryan Young]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $15,000

This was my 1st property to add to my portfolio. I have a great realtor and actually purchased it sight unseen. It already had a tenant in place and they have been amazing so far. I plan on going in and do some renovations after the lease is up to increase my monthly cash flow.

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

I was working with my realtor for a couple months and this popped up on the MLS. My realtor went and looked at it and we put an offer in the same day. It was listed at $79,900 and I submitted a low ball offer at $60,000. The seller was extremely motivated so she countered at $65,000 and I accepted.

How did you finance this deal?

Conventional loan with a 20% down payment

How did you add value to the deal?

By purchasing the house at $65,000, I initially established $20,000 in equity as it appraised at $85,000. I intend to go in and do some slight renovations (new flooring, paint, countertops, vanities in bathrooms) and the ARV will most likely be around the $115,000 mark.

What was the outcome?

I have been owning it for 6 months now and everything is going great. I was a little nervous at first when I bought it since there were already tenants in place, but they have been terrific.