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Updated over 5 years ago,
First home to pay off
Investment Info:
Single-family residence buy & hold investment in Bakersfield.
Purchase price: $253,000
Cash invested: $50,000
A single family home I bought to live in when was single and rented 2 rooms for 2 years. Upon getting married, had my husband move in and removed one of the renters to make room for his kids. Made a plan with husband to pay off the property in less than 5 years and buy another house in an area we would like to live in and pay off the new mortgage of the second house with the rental of this unit.
What made you interested in investing in this type of deal?
Renting was too much and my last rental had me buy appliances which I did not want to carry to another rental but to a long-term residence that I can call my home.
How did you find this deal and how did you negotiate it?
Contacted and agent on Zillow to talk about a property I was interested in. She started talking to me and I gave her 3 addresses to check and evaluate and this one was the winner. The appraisal showed the house was valued at correct price. I was in a rush. when I got accepted I did not push any further.
How did you finance this deal?
20% down from 401k and the bank loan for the rest as in FHA.
How did you add value to the deal?
Used Airbnb to bring in cashflow, then turned into permanent renters.
What was the outcome?
The house is spacious and I enjoyed having good renters around whom bring in cashflow.
Lessons learned? Challenges?
Good renters may not be easy to come by. sometimes as cashflow is the best interest, but a good screening and understanding of house rules and regulations should be discussed in detail.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My real estate agent was a go getter Heather Gullani. Also her lender Kevn Gonzalves worked very fast given the push and quick delivery of the requested documents by me and we closed the escrow in 29 days.