First Rental Property

[Randle Weaver]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $6,000

Found a landlord that is looking at unloading his properties.
I am trying to figure out how to purchase everything he has.
He is selling a few each year, so I am trying to figure out the deals.

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

My family has invested in real estate. My grandmother started the trend and we have all seen how well she has done. She put the bug in us all.

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

I told a friend of mine that I was looking at purchasing rental property in Tulsa. My friend owns a carpet cleaning service in Tulsa. He spoke to the landlord of the property he was cleaning and mentioned that I was looking to purchase a rental. This all happened the same day. CRAZY! The landlord told him that I could buy this house for $30,000 if I could come up with the money before the end of the year. Well to make a long story short, I found the money, and the property is mine.

How did you finance this deal?

I took out a personal loan to get the deal done. After repairs, I have a tenant, and I am refinancing to get a better rate.

How did you add value to the deal?

I bought the house that needed a new roof, water heater and some electrical panel upgrades. The house was renting for $650/mo. The house appraised at $45,000. However, with all the repairs that were needed, we got a great deal at $30,000. I put $6,000 into repairs and now have it rented for $725/mo.

What was the outcome?

After all the repairs we are renting the property for $725/month.

Lessons learned? Challenges?

Deals can pop up anywhere at anytime.
I have been looking for a deal for a long time and out of nowhere and in the unlikeliest of circumstances a deal jumped into my lap. Keep looking and let people know.

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

I absolutely recommend you use an Professional Engineer (PE) to do your home inspection. They do a better job than the basic home inspectors and they have saved me tens of thousands. Totally recommend it.