First buy & hold investment in Omaha, NE

[Xiaoyi Yu]

Investment Info:

Single-family residence buy & hold investment in Omaha.

Purchase price: $175,000
Cash invested: $35,000

My first ever investment property using the most basic Buy & Hold strategy. Exactly meets the 1% rule. Bought with tenants willing to renew, so luckily didn't need to deal with vacancy and finding new tenants.

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

As a beginner who never owned real estate before, I was very motivated to begin the journey after reading Brandon Turner's book "The Book on Rental Property Investment".
I have some savings, and didn't foresee any problem to get my first ever mortgage approved, so just started with the most basic Buy & Hold strategy.

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

I have known an agent from Omaha for a while through friends. He also has his own property management company.
The agent recommended me this property which he was managing for the previous owner.
Since the price was fair market and my agent was dual agent for this property, didn't ask for discount on selling price.
No major issues after inspection, and seller accepted repair requests for minor stuff.

How did you finance this deal?

Conventional 30 years fixed with 20% down. 5% interest rate.

What was the outcome?

Tenants was renting at 1600 a month, and successfully renewed the lease at 1750 for another year as promised by my agent/property manager.

Lessons learned? Challenges?

I could have worked harder to shop for loan. I should be able to get better rate.

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

Kevin Schaben is the agent who made my deal come true and is currently managing for us.
Despite being dual agent in transaction, he was extremely helpful to me. As my property manager, he puts my interest above his and always recommends me the best option even though that means he will make less money.
Lucky to have him as both my agent and property manager.