Investment Info:

Single-family residence buy & hold investment.

Purchase price: $146,500
Cash invested: $45,000

This was our primary residence turned rental.

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

I had read Rich Dad Poor Dad and our real estate agent (who is also a local investor and good friend) turned me on to the idea of buy and hold investing.

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

This home was for sale by owner in the neighborhood where we were renting. We knew the mortgage would be cheaper than what we were paying in rent, and the home was in better condition than where we renting. We bought it, and moved all our stuff from just a few doors down. Kept our neighbors and upgraded to a nicer house that was OURS.

How did you finance this deal?

I had been raised with traditional views of personal finance. We put a full 20% down with money that I had inherited. However, since it was owner occupied, we saved on the interest rate.

How did you add value to the deal?

After just 6 months, we realized that our new home was too small for our growing family. When we bought, the plan was to eventually turn it into a rental. However, we couldn't wait, and moved out. We found tenants right away, and we rented it at $1200. A year and a half later, we updated the floors and made some other repairs. Now it rents at $1300 per month.

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

Matt Boothe with Virginia Capital was our agent on this purchase. He is a local real estate agent and investor who is crushing it in the Hampton Roads area. He is also my mentor, good friend, and all around a fantastic person. I recommend him to everyone I meet.

David Wrigth, now the Mortgage Sales Manager at First Advantage Credit Union worked with us on the loan. I loved working with David. He helped educate me about the process and was very easy to work with.