My first rental house at 21 years old

[Matthew Bolin]

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $35,000
Cash invested: $7,000

Bought this house after flipping my first home. Put 20% down and added some updates for some forced appreciation and its currently under lease at $575 a month with about $275 positive cash flow a month.

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

Looking to start building my real estate investment portfolio.

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

My Dad actually owned the house. He has rented it out for years and he just put new flooring, paint, roof, and siding on it so he decided to sell it to cash out on his forced appreciation and equity. I had just sold my first flip so was sitting on some cash. He had it listed for $45,000 and he sold it to me for $35,000.

How did you finance this deal?

Through a normal mortgage through my banker with 20% down.

How did you add value to the deal?

I added central heat and air to eliminate the window unit and floor furnace. I also added new kitchen cabinets and remodeled the back porch into utility/mud room.

What was the outcome?

Great, house is under lease now.

Lessons learned? Challenges?

Learned a lot about dealing with tenants with this being my first experience with them.