First Investment Purchase

[Tim Murphy]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $382,500
Cash invested: $100,000

Vacation rental in Big Sky, MT.

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

My wife and I love to ski and spend time outdoors and Big Sky offered both in a beautiful location.

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

We found the deal through an agent we met during one of our off days during a ski trip while driving around the local area. We obtained her contact information and contacted her 6 months later requesting access to the MLS in order to identify potential investments. After identifying several options, we flew back up to Big Sky in order to explore the various options. Ultimately we identified the home we wanted to make an offer on during this trip.

How did you finance this deal?

Conventional lender, 20% down.

How did you add value to the deal?

We were very new to investing at the time (and still are) so we negotiated the price only negligibly. We were able to obtain all of the home furnishings in the deal.

What was the outcome?

The investment was purchased and we updated the investment with new carpets, new countertops, new appliances, and a hot tub. The home rents well and has increased cash flow with each year. Our equity has increased by approximately $250k through forced and market appreciation.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our real estate agent, Stacy Ossorio, was amazing and we would not have this investment without her.