FHA townhome purchase turned LT rental

[Heidi Braunhardt]

Investment Info:

Other buy & hold investment.

Purchase price: $133,000
Cash invested: $20,000

This was the very first property I purchased. It was back in 2011, and I used an FHA loan to acquire the property. I lived in the home with two other roommates (it is a 3/2 townhome) while I saved up to buy my next property. When I moved out and purchased the single family I now live in, I started renting the townhome for $2K/month.

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

I was ready to start saving money, so purchasing a townhome with $20K down and living for free (rent paid by roommates), allowed me to save a lot of money for my next purchase.

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

I did not have my RE license at the time, so I worked with a Realtor.

How did you finance this deal?

FHA

How did you add value to the deal?

I only had to put a little money into the home as it was a newer construction townhome.

What was the outcome?

I have been renting it to the same tenants for the past 4 years for over $2k/month.