Just closed on my 1st investment property!

[Ryan Bell]

Investment Info:

Single-family residence buy & hold investment in Thousand Oaks.

Purchase price: $530,000
Cash invested: $1,000

Just bought my first property to hopefully kick start many more bigger deals! This house was purchased from a close family friend which allowed me to use a "Gift of Equity" to cover the down payment, so I'm in very little out-of-pocket cash which is nice. I'm about to do the BRRRR method and am currently in the rehab phase and am looking at putting in about $20k. Currently comps show the ARV is between $680-700k so after the refi, I should have 22-24% Equity and still will be cash flowing by around $200 if all goes well. Maybe not the best deal, but for Southern California, I don't think its too bad, but we'll see! At least I got started and it should be a great property to hold on to.

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

Very interested in the BRRRR strategy and this property pretty much fell in my lap so I took a chance.

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

Close family friend is retiring and scaling back and wanted to sell quickly. I talked her down as low as possible and was able to use a "gift of equity" since she sold it for below the appraised value, which covered my down payment.

How did you finance this deal?

Conventional

What was the outcome?

Currently in rehab phase, will update as things proceed....

Lessons learned? Challenges?

Lots! I've been watching podcasts and learning all I can for over a year, though once you jump in, thats when all the questions emerge that you have to work out. So learned the mortgage/purchasing process, working the numbers, and now learning a ton doing the rehab.

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

No agents. Used Quicken Loans, which so far I am happy with.