First Rental Property

[Scotty Motes]

Investment Info:

Single-family residence buy & hold investment in Howe.

Purchase price: $135,000
Cash invested: $135,000

First Rental property , looking to pull some equity and purchase another.

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

I had a 5 yr renter before I closed, and is a strategy that I will continue to try out in the future.

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

I have a dedicated agent, but we had to go with a cash offer to get it done.

How did you add value to the deal?

pulled comps, city's growth potential, property future value, potential cash flow, looked for builders that are coming in that also see potential for growth.

Lessons learned? Challenges?

Lessons learned - sometimes if you want it and you see the value , you have to pay for it. I wasn't willing to waste any more time/money/associated costs trying to find a home and get into a bidding war, so I went all in knowing I had a renter in my pocket.

Challenges - finding a home that at my price point, in a growing city, and was in good enough condition that more cash wasn't going to fly out of my pocket and be in the home for more than its worth.