First home is now our first investment property

[Alex Lieske]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $440,000

Fully renovated townhome when my wife purchased it (then fiancee) in 2006. Value has dropped about 30% since the purchase, but it was a perfect home for us in a fun area of Baltimore City (Federal Hill) in our mid-20s. When we started having children, we moved and started renting it out. It's a 15 year fixed so almost completely paid off. Currently it's only about $175 of monthly cash flow, but in 3 years it will generate about $2700 per month for us. Part of our retirement plan!

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

At the time investing wasn't on our minds, we just loved he home (we were only 25). Once our family grew and we moved, we realized the potential of cash flowing real estate.

How did you finance this deal?

Conventional 15 year fixed