Bad First Investment - Beware Newbie Investors

[Chibuzor Alumba]

Investment Info:

Single-family residence other investment in Winnipeg.

Purchase price: $195,000
Cash invested: $22,000

Bought another primary residence.
Tried to rent out my first primary residence.

Rented to a bad corporate tenant who did not communicate nor check on the house.
Came in to find the furnace turned off and the entire home had its pipes frozen.
Insurance wont cover it because i didnt rent it on Airbnb like my coverage specified.

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

Easy way to scale as we put 5 - 10% down, upgrade primary residences each year, and avoid the costly 20% down payment typically required

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

We found this new house on the MLS, it was listed for $199,000.
After taking a look at it, we found mice-remains, and some other damages, and offered $190,000.
We were countered at $195,000 and we accepted (Note: We bought as typically buyers, there is absolutely ZERO equity in this deal)

How did you finance this deal?

Typically bank financing. We put 10% down because we already had one high interest mortgage in our names but had to upgrade homes due to the first being too small

How did you add value to the deal?

Havent done that yet but we plan to fix all of the little things we found during the inspection

What was the outcome?

Still in the middle of it.

Lessons learned? Challenges?

Lessons learned:
1. NEVER buy like a typical buyer. If life hits you hard and you need to sell, you'll go in debt because there is no equity in the deal.
2. Next time, I hope to buy a run-down property that I can add value to by making repairs. If I had put 10% and put in work, I might have increased the property value way past the 20-25% mark, which lets me get a HELOC or re-finance, pull my money out, and do it again

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

NO. My agents and brokers are inexperienced and despite me saying i want an investment, they recommend terrible money-sucking properties my way.
Its definitely NOT their fault. I get anxious to make 'The Next Buy'. I need to get more disciplined with my requirements so I can weed out all properties that do not match what I want.