Very first investment

[Joseph Banko]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $3,100

Very first real estate investment. Conventional investment loan, 20% down. End unit townhouse, 2b/2ba. B-/C+ neighborhood. Cash flowing about $200/month after all expenses.

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

Taking action was the biggest hurdle. I sat on the proceeds from the sale of my previous residence for 2 years because I wasn't sure what to do with it. I'm renting in Seattle, and saving it for another primary residence isn't an option here. I put that cash back into a rental property in a cheaper market.

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

On the market. Didn't negotiate. Actually paid over asking price in a very competitive market.

How did you finance this deal?

Conventional investment loan.

How did you add value to the deal?

Minor repairs to make it rent ready. No real value added yet.

What was the outcome?

Cash flowing with a good tenant in place.

Lessons learned? Challenges?

Probably shouldn't have spent all my cash on a big down payment. Next investment will have to be a BRRRR.

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

Jenn Rowland in Raleigh.