First Investment deal

[Wesley Hancock]

Investment Info:

Single-family residence buy & hold investment in Las Vegas.

Purchase price: $244,000
Cash invested: $56,000

Single family residence in a growing community on the north side of Las Vegas. 3 Bed, 2 bath, about 1600 square feet. Built in 2005, it needed almost no upgrades, only added appliances and cleaning.

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

My realtor helped me through the process, thought a SFR in Las Vegas at this size was the best opportunity for a long term investment and growing equity.

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

My realtor found and did almost all negotiations as I was new to the process

How did you finance this deal?

Traditional 30 yr loan, with 20% down.

How did you add value to the deal?

Didn't add a lot of value, as there were no opportunities to at the moment. House is in great shape, no problems, almost new everything.

What was the outcome?

I didn't add value, just bought to hold with my 20% equity position. House has gone up about $10K in a year.

Lessons learned? Challenges?

To look for investments that have opportunity to add value and also look for cash flow opportunities at the same time as equity opportunities. I bought this house with almost no opportunities to add value and my cash flow is razor thin. The higher quality houses available to close on give you less opportunities. Need to find value add properties.

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

My network of professionals on the deal were very good at their jobs, but did not have a lot of experience in investment properties and how to best approach that aspect of the market. I would absolutely recommend them if you are looking to buy your first primary house, but not seeking investment opportunities to grow.