Our first deal, OOS REI

[Jennie Carolan]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $181,000
Cash invested: $46,000 (including loan and closing costs)

This is our first investment property. We live in CA and are investing long distance.

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

We wanted a good cash flowing property in a growing market.

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

We found this deal on the MLS. It was for sale by owner. We payed the asking price. Originally a cash buyer beat our offer, but their offer fell through.

How did you finance this deal?

We put 20% down and are using a mortgage company at a 3.5% interest rate.

How did you add value to the deal?

Minor fixes. Installing washer/dryer and garbage disposal.

Lessons learned? Challenges?

Challenges... it is in a flood zone. We obtained a certificate of elevation to help lower our flood insurance.