Accidental REI..... Before Bigger Pockets

[Habbak Burs]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,999
Cash invested: $12,000

This was my home that I lived in for 2 years then I moved out and decided to rent it rather than sell it... at the time all I looked at was does the rent cover mortgage and I am cash flow negative, but I didn't want to sell, and my intention wasn't to become an investor but it happened by accident. Theeeeeeeeeeeeeeeeen later on I found bigger pockets and now I am more knowledgeable.

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

This is when I became a REI by accident and I had no idea what I was doing.

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

I just drove by it once, they were building new homes... I was orginally looking for a place to rent but I saw it and decided to buy it.... The reason I didn't Sell is because if I hold it for 5 years I know it will appreciate in value more than the average because of the area.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

I added trees and grass to the back yard. I did some work in the front yard. The home was purchased brand new so it is in really good shape.

What was the outcome?

I have a 2 year lease that has 1 more year left.

Lessons learned? Challenges?

there are more expenses other than just covering mortgage.