First real estate deal!

[Edward Kiser]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $57,000
Cash invested: $2,000

Purchased using a $0 down VA loan
I lived here for 1 year until I completed my service in the Marine corps, once I moved out I hired a property manager and was able to have it rented within a couple weeks.
Cash flows $200/month after all expenses including Capex, vacancy, and maintenance.
Utilizing property manager for 10% of the rent

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

I jumped the gun on this deal, I just wanted to take action and get a property that cash flowed.

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

I found this deal after searching the MLS for awhile and saw that it fit my criteria.

How did you finance this deal?

VA 0 down loan

How did you add value to the deal?

It was actually damaged by Hurricane Florence so I got a brand new remodel for free!

What was the outcome?

It was a huge learning experience, I did not purchase a strong deal as I pretty much paid market value for it, however it got me started in investing and taught me a ton. At the end of the day it worked out and cash flows $200/month.

Lessons learned? Challenges?

If you have little capital, buying turn key rentals is not a good way to build wealth. Sure it DOES cashflow, but left me with no capital to purchase another.