First Investment Property

[Jonathan Mabanta]

Investment Info:

Single-family residence buy & hold investment in Las Vegas.

Purchase price: $213,000
Cash invested: $27,000

Bought this property with 10% down, added new paint, new floors and quartz counter tops. We rented it out and then refinanced pulling out $29,000.00 and removing PMI at a lower interest rate (positive $2K from investment). We are now pulling in $450 positive cash flow every month.

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

It seemed affordable and with the new Las Vegas stadium being built we felt that the market in Las Vegas was about to boom.

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

We searched it on MLS. The list price was $225,000. and we negotiated it down with the listing agent.

How did you finance this deal?

10 % down conventional finance

How did you add value to the deal?

We added no wood looking tile, repainted, added quartz counter tops and new fixtures. We did the work ourselves with no contractors.

What was the outcome?

We were able to instantly rent out the property. When the value increased we refinanced pulled out the equity, removed the PMI and were able to raise the rent.

Lessons learned? Challenges?

Do your homework and make sure the numbers work. Sometimes getting contractors would be the way to go. As tile work was back breaking.

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

We worked with Urban Nest Realty! Great Agents!