First True Investment Property

[Michael Cross]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $10,000

Single Family Half Duplex property which required mostly a thorough clean-out, roof repairs and some window replacements. Finished the attic space to add an additional bedroom and 500 sq ft of additional living space.

Currently rented with local Property Manager for $820 per month

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

This property was well priced with only minor repairs. It fit the 1% rule and could be rented easily. Good property for my first investment in a new market

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

MLS with a local realtor

How did you finance this deal?

Local Credit Union 15 year commercial loan 80% LTV

How did you add value to the deal?

Finished the attic to add 500 sq ft of living space, 2 rooms and a 4th bedroom

What was the outcome?

Buy and Hold Rental successful for nearly 1 year

Lessons learned? Challenges?

Sellers left the garage full of garbage, filled up a 15yd dumpster to empty it.
One of my contractors did poor work and charged for more than 20 hours he was not working at the property - next property i did a bid price versus a time and material.