School House: Our first Real Estate investment

[Krissie Poplin]

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $53,500
Cash invested: $25,000

This property was my fiancé and I's first rental real estate investment. We bought this home as a foreclosure with a 30 year conventional investment loan. We spent one month rehabbing this property to bring its appraisal value up $30,000 with only $10,000 invested into the rehab.

How did you finance this deal?

We financed this deal with a 30 year fixed conventional mortgage. We put 20% down to secure the property.

Lessons learned? Challenges?

Throughout the rehabbing process we've learned that it's definitely OK to contract out some of the work, if not all, on a foreclosure.

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

We worked with an awesome lender in Baxter, MN at First National Bank North. His name is Troy Friberg and he has helped us finance three 30-year fixed conventional mortgages on our properties.