My first rental property

[Timothy Roberson]

Investment Info:

Single-family residence buy & hold investment in Angier.

Purchase price: $78,000
Cash invested: $500

A single family 3 bedroom and 2 full baths, front porch and deck.

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

I invested in this property because it was a great deal. A single family property with hardwood floors and only cosmetic repairs for only $78k. When I purchased the property, it instantly had equity in it. The area valuation has doubled in value since purchase date.

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

I found the deal through a real estate agent that told me about properties being sold on government websites. I used a formula to get the MAPP (max allowable purchase price) and presented that price and it was accepted.

How did you finance this deal?

This deal was financed by a loan.

How did you add value to the deal?

I added value be doing the cosmetic work it needed.

What was the outcome?

I have kept this property rented since I have had it.

Lessons learned? Challenges?

Lesson learned was to always do your homework on a property and go for it. My father told me not to get the property. If I had listened to him, we would have started this small rental business.