My first home and first investment property.

[Michael Magno]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $83,500
Cash invested: $1

This was my first investment property. It was my primary residence from 2003-2015 when my wife and family moved into our new home. I have had the same renter in the home in since. I still owe just under $50K and it cash flows around $180-$190/month. I eventually want to use it for a 1031 exchange once a few more repairs are done.

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

When I first purchased the home in 2003, it was never going to be my forever home. But once the market crash happened, I lost half of the value overnight. I stayed in the home a lot longer, and the value is just not getting close to where it was in 2003.

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

Used my Realtor at the time.

How did you finance this deal?

Crazy times in 2003, I was a new college graduate, so I was able to get a Stated Income, 0% down, NO PMI loan through my friends dad who was a broker at the time.

How did you add value to the deal?

I've updated the home over the years. Vinyl Siding, New Roof (2019), I even housed hacked for a few years and rented out a room to a friend during the height of the recession to help offset the cost.

What was the outcome?

Still own the home and it cash flows, with some equity.

Lessons learned? Challenges?

Always learning!

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

NA