First Investment Property

[Janis A.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000

SFH 3 bdrm 2 bath, pets allowed, private fenced in yard, washer/dryer/refrigerator/AC wall unit provided

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

This was a case where I lived in this home prior to even being interested in real estate investing. I bought it in 2014--a good time to buy as the housing market hadn't fully recovered yet. Soon after I became interested in real estate investing and once I bought my next place, put this up for rent.

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

Used a real estate agent, offered $20k below asking, negotiated up just a little.

How did you finance this deal?

The first mortgage was a conventional loan. I then did a cash out refinance a few years later with a slightly lower interest rate.

How did you add value to the deal?

None was needed. Practically new home. Just maintenance and upkeep.

What was the outcome?

It's currently rented and generating income. I used a property manager to make my life easy and I save 5% each for repairs, maintenance, and vacancy.

Lessons learned? Challenges?

This house has been a piece a of cake. It was my second property I learned some lessons.

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

Real estate agent.