One of my first investments

[Timothy Moore]

Investment Info:

Single-family residence buy & hold investment in Troy.

Purchase price: $111,500
Cash invested: $6,000
Sale price: $150,500

Buy and hold rental. Sold to purchase higher ROI investments. 93% occupancy and rented at 1300-1400.

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

Building a rental portfolio by starting with a safe investment (3brm SFH home in a secure area with great schools)

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

I found it through my agent on the MLS. Retail deal with little work involved

How did you finance this deal?

Traditional lending through Flagstar bank with personal funds for the down payment

How did you add value to the deal?

Given it was retail pricing, it wasn't the biggest value add but I was able to find a home that was quirky / smaller and on a main road (thus lower acquisition cost) but still in a strong area that I knew would continue to appreciate and rented it out at a decent rate.

What was the outcome?

Overall a fantastic investment. Values in the area (and overall market) increased substantially over the 4 years I own this property and I was able to obtain a positive net cashflow of about 300 per month with minimal maintenance costs.

Lessons learned? Challenges?

ROI wasn't really strong due to retail pricing and the home prices were already fairly high in this area, however appreciation on this deal was fantastic and it was an easy area to start in because it could sell easily.
It took two months to rent because it was a quirky house but once we found tenants, they stayed a while and the house didn't require too much maintenance.