Background: I am 26 years old living in Southern California where home prices are ya know.... IMPOSSIBLE for someone to purchase making $40k/year let alone minimum wage like myself. I decided to stay at home "for as long as I can", said the Baby Boomers, to save money while I go to school. Well I switched majors and I felt pretty behind compared to my pears, but you know what, everyone has their own timeline. Living at home paying little rent compared to the rental market, I managed to save quite a bit of capital because I don't spend on materialistic items. My 3rd warranty backed iPhone 6s still works good for my needs.... haha.

I have been floating on the forums here for about 1-2 years now, reading, listening, reading and listening some more. Expanding my network by randomly messaging people that I "followed" because they provided excellent advice to others. I basically did what is considered annoying to the average seasoned investor and ask questions with the little value I could bring to the table, unfortunately. However, with what I have learned I can now pass the advice I received to others.

Original Plan (still future): My original plan was to first house hack here in Southern California and purchase a 2Bed 2Bath condo and rent out the other master bedroom. But even a $250k condo I couldn't afford due to my Debt To Income Ratio, I will still do this after college, but as my first investment... it wasn't an option.

Where: Indianapolis, IN.

How: I spoke to a lender my agent referred me to. With my good credit and little income I was able to get pre approved for $48,000. However, I told my lender I could pay off my car to free up more borrowed cash. I was now pre approved for $78,000. Hell yeah I will trade a car payment for a mortgage that will also cash flow. With my Minimum Wage Income I can now purchase my first class B investment property.

Purchase Price: $92,000 3Bed 1.5 bath. 1064 sqft with a lot size of 8978 sqft.

Rehab: $6400, this included painting the entire interior, repair front porch concrete, landscaping, new doors, new electrical panel, and a ton of miscellaneous items.

All in: $28,249

Rent: $1075/month

Cash Flow: $315~/month about a 13.4% ROI

I have learned a ton during this process and for this being my first buy and hold "base hit" 13% ROI isn't bad. My next property will definitely be a BRRRR considering that ALL-IN cash is technically locked up for now.

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First OOS Buy and Hold with Minimum Wage Income

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