First deal where I cought the REI bug

[Saxxon Rybski]

Investment Info:

Single-family residence buy & hold investment in Tucson.

Purchase price: $150,000
Cash invested: $18,000

This property is buy fix and hold 3/2 in Tucson az. I was able to get the property with nothing down; because my lender accepted the equity I had built into this deal as my down payment. I put 18k in materials and rehabbed it myself. I attended to rent it out on airbnb but the HOA didn't allow it. So after completing the rehab I got a PM and rented it ou for $1850 a month. My PITI on this is $1188 a month with $185 PM fees and $250 for capes, vacancies and maintenance. Leave me with $227 a cashflow a month with 150k in equity.

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

I always had intrest in investing in real estate; but didnt know how to start and didnt think I was in a financial situation where I could invest. I was in debt that I would have took me years to payoff. So I signed up for a debt settlement company that I didnt do my research on before signing up (the biggest mistake I've ever done)

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

This property was given to me buy a friend that passed. So no negotiations need just needed to figure out what to do with it that ignited my passion in investing.

How did you finance this deal?

This was given to me in a trust after a friend passed. My lender accepted the equity in the property as a down payment so nothing out of pocket. As far as the rehab my friend also left me some money that I used for the rehab and holding cost.

How did you add value to the deal?

I was able to save money by doing all the work myself. I put 18k in materials I repainted the interior , replaced the old iirrigation, put up shade screens over the pool and lounge area in back yard, repainted and stained the kitchen and bathroom cabinets, replaced the kitchen countertops, replaced the flooring in both bathrooms and walk in closet and finally put a new Hvac and heater in.

What was the outcome?

The outcome was better then expected; I put in 18k and brought the property value up 30k. Giving me 150k equity and cash flow of $227 a month after all expenses.

Lessons learned? Challenges?

I learned that I wanted to invest full time that it wasnt as hard or scary as I thought. I also learned to due my due diligence carefully. So I can have exit strategies before starting.

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

Buzz Dempsey with fairway mortgage was the lender I used. I highly recommend him he was very knowledgeable, friendly and quick. However he doesn't work with investors very often.