first rental investment

[Jeremy Hester]

Investment Info:

Single-family residence buy & hold investment in Dothan.

Purchase price: $74,000
Cash invested: $4,000

was my fist home purchase which i lived in. my wife and I purchased a larger home when our second son was born. Decided to try renting it out instead of selling it. Its been in demand since i made that decision.

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

i was interested in buying the house across the street but the seller had a contract on the sell already. i knew the seller and he let me know that his neighbor had just taken a job out of town and was going to have to sell the house. i went across the street and asked to see the house. he was very eager to sell so we negotiated and i wound up with a great deal (at the time).

How did you finance this deal?

100% mortgage financed

How did you add value to the deal?

Insurance paid for a new roof after a hail storm, new AC unit and heat pump. pulled up carpet and refinished hardwood. paint and miner fixes.

What was the outcome?

i've been renting the house for 4 years with no big issues

Lessons learned? Challenges?

Since i had no experience in rental investments i was weird about asking the proper rental rates. i've fixed this issue and see this as a business now.