Rental property investment

[Shari Nott mcKinley]

Investment Info:

buy & hold investment.

Purchase price: $72,000
Cash invested: $20,000

Rented out, still own property

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

I saw a financial opportunity. I used to be an escrow officer and know the market well.

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

Online on a homes for sale website. I contacted a real estate agent and put in an offer. It was a short sale where the sales price had already been approved. It was a very long waiting process and took about 3-4 months to close!

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

After the purchase I hired painters, flooring, and cleaners and got the mess cleaned up and ready to rent.

What was the outcome?

The home has been rented out to the same renter for the past 11 years. I don’t increase the rent so I don’t have to deal with the cost of flipping renters! It is now completely paid off so it makes a nice profit each month. ALL profits go in the bank toward my next purchase. It’s invested and never spent!

Lessons learned? Challenges?

Take advantage of a down market when you can! And repeat if possible! I’m just a kindergarten teacher doing this on the side. I found something small I could afford and continued to grow from there!

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

Not at this time