Single family inside Self Directed IRA Long Distance

[John Erlandson]

Investment Info:

Single-family residence buy & hold investment in Alamogordo.

Purchase price: $140,000
Cash invested: $10,000

Single family home rented under contract for 2 years.

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

First property purchased. Starting small. Looked for a home in an area with very consistent renters. Friend of mine grew up in this city and owns several properties already. There is a University and hospital in town, and an Air Force Base 10 minutes out of town. All supply continuous stream of renters.

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

Found the deal on Zillow, and working thru an agent in that city

How did you finance this deal?

Working inside the IRA I wanted to use a mortgage too. There are options for that, but I needed 50% downpayment, which I did. All upgrades and expenses come from the IRA too.

How did you add value to the deal?

Upgraded counters to granite. Painted whole interior walls cabinets to be gray walls and white cabinets. Added new washer and dryer. New landscaping to back yard.

What was the outcome?

Rented by first person viewing it, for 2 year contract.

Lessons learned? Challenges?

WIll be doing more aggressive BRRRR properties next. I purchased too high, and financed immediately, before the rehab. Will change that order!

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

Rachel Connelly, Coldwell Banker in Alamogordo NM.