My First Investment Property

[Isaiah Henry]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $295,000
Cash invested: $15,000

One of my first real estate investments (Pre Bigger Pockets). Bought an older condo townhouse with a tenant already locked in. Used the 5% down payment and First Time Home Buyers Rebate to save alot of cash while getting into the property. Tenant has since resigned for an additional year. No updates were made to the property as the tenant wanted to stay in the property and took it as is. Property is cash flow positive. Looking to sell and move onto another property and work the BRRRR strategy.

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

New to real estate and wanted to get into the Canadian GTA market as best I could.

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

Looking back on this deal I see I could have done better. I got into a bidding war and ended up going over asking. The home is still in a high rental/ high appreciating neighbourhood so my mistakes have been minimized. I have learned a set of things not to do while negotiating and will look to implement them in the future.

How did you finance this deal?

Traditional Finance - 5% Down Payment - 5yr variable - 25 Year Amortization

How did you add value to the deal?

I didnt... knowing what I know now I see that as mistake or missed opportunity. I was just so excited to get a renter I didnt see any need to at the time. Kicking myself now but if you dont win you learn.

What was the outcome?

Tenant is great and has signed for an additional year. Minimal headaches and will stay as long as he's allowed (his words not mine). Property is cash flow positive.

Lessons learned? Challenges?

Adding value - something I missed and am hoping to capitalize on in the future.

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

Mortgage broker - She was amazing and has been a great resource
Agent - Very "average" will not use again