First Deal was an Accident, I Promise

[Christopher Colbert]

Investment Info:

Single-family residence buy & hold investment in Landover Hills.

Purchase price: $108,000

House-hacked first home after purchasing a second home. Tenant occupied continuously since October, 2012. Currently on second tenant.

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

It was out of necessity. I purchased my first home after my Dad remarried. Two years later, they decided to purchase a farm property in preparation of retirement and asked me to buy their home because we wanted it to stay in the family.

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

This deal was found at church. I had been talking about buying my first home and a former church member needed to sell her mother’s home after she died. They had a tenant who had not paid rent in several months so the easiest way for them to get rid of the tenant was to sell the property.

How did you finance this deal?

This deal was financed through a first-time home buyer's bank loan (not FHA), which made it easy to purchase my second home, which is the one I live in now.

How did you add value to the deal?

I was a ready and solid buyer at the bottom of the housing crash. I was in the right place at the right time.

Lessons learned? Challenges?

Having received such a good deal as a result of a bad tenant, I learned very quickly the importance of vetting your tenants. I do a credit and background check at the time of application, which seemed to cut down on inquiries from potential tenants who would not be consistent with payments.