Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

User Stats

730
Posts
689
Votes
Jonathan Taylor Smith
  • Rental Property Investor
  • Durham / Raleigh (Triangle), NC
689
Votes |
730
Posts

This was my first rental property investment, back in 2014

Jonathan Taylor Smith
  • Rental Property Investor
  • Durham / Raleigh (Triangle), NC
Posted

Investment Info:

Single-family residence buy & hold investment in Durham.

Purchase price: $60,900
Cash invested: $9,694

This is the one that started it all! I told my wife that I wanted to finally buy that rental property that I had been talking about getting into for all those years. My schedule now had enough free time to do so and I had the 20% down-payment ready to go. I started looking and came across this 2BR / 1.5 BA Townhouse in the Peppertree Community of Durham about 25 minutes away from my house - and although it needed some work, I thought it was perfect!

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

I liked the idea of starting out with a Townhouse, because it had a reasonable HOA fee; but I knew the HOA covered common area and external maintenance items like the roof, siding and parking lot.

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

It was found on the MLS and it was my first and only property purchased prior to my later getting my own Real Estate Broker's License.

How did you finance this deal?

I had funds that I had saved in my business (I'm self-employed) to make this purchase at 20% down, with 80% coming from Quicken Loans. However, they would not allow me to use these funds from my business. So I ended up taking a loan from my wife's TSP account (which they would allow me to use); and then I paid the TSP loan off with those same business funds after closing.

How did you add value to the deal?

I estimated that it would require $3,000 to be rental ready... But it actually ended up costing over $9,000. I've not since underestimated my rehab budget by a factor of 3.

What was the outcome?

My first tenant that I put into this property is still there to this date - 4 years later! I was very fortunate to have started out my Landlord career with such a great first tenant. And I've since gotten 5 additional units within this same community.

Lessons learned? Challenges?

I learned a lot on this project and started to build my team, such that I was able to do the next one (less than 6 months later) for a much more cost effective price.

  • Jonathan Taylor Smith
business profile image
Blue Chariot Realty & Management
5.0 stars
8 Reviews

Loading replies...