Single Family Rental now Cash Flowing

[Andy Chen]

Investment Info:

Single-family residence buy & hold investment in Glendale.

Purchase price: $300,000
Cash invested: $300,000

This property was purchased while I attended medical school. It was not meant as an investment until after I moved out and realized all the benefits of real estate from renting. It was not a strategic investment from the perspective of cash on cash since I didn't leverage, but it is generating a 9.6% cash on cash currently with probably 100k unrealized appreciation in 10 years. It taught me that with time virtually all real estate will be able to generate favorable returns even the ones that were purchased with zero strategy.

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

I needed it for medical school

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

Typical real estate agent in the area. We bought it during the last downturn.

How did you finance this deal?

All cash

What was the outcome?

I'm currently cash flowing 9.6% with at least 100k unrealized appreciation. Not to mention the 27.5 years worth of depreciation.

Lessons learned? Challenges?

It taught me that with time virtually all real estate will be able to generate favorable returns even the ones that were purchased with zero strategy.

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

West USA in Peoria is a fantastic property manager with reasonable fees.