First Rental Property (SFH)

[Miguel Rivera]

Investment Info:

Single-family residence buy & hold investment in Aurora.

Purchase price: $133,000
Cash invested: $22,941

Very first rental property located in the same block that I grew up in. This corner house I remember using it as a landmark with my fiends while riding bikes in the neighborhood growing up. I went into this deal using mostly my gut feeling and knowing very little with the guidance of my dad who is also an investor. Very glad I decided to purchase this property with the cash flow it produces.

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

Location, knowledge of local market & ambition to finally take action!

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

Driving by the house & MLS. My negotiating strategy involved leveraging the seller's motivation in selling, as I knew that the house was an estate sale and in a little bit of distress. Also the house had been sitting in the market for over 3 months.

How did you finance this deal?

Traditional conventional loan. 10% DP. First time home buyer grant.

How did you add value to the deal?

waterproof leaky basement, remodeled bathroom, plumbing & electrical update as well as new fuse breaker box. kitchen upgrades, new front porch, new wooden fence.

What was the outcome?

Renter proof solid house to minimize future expenses.

Lessons learned? Challenges?

Under estimating repair costs after closing. I did go a bit over budget.

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

I'm a licensed real estate broker and represented myself.