First SFR buy & hold

[Ron Murray]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $42,000
Cash invested: $10,000
Sale price: $62,000

My wife and I discussed buying a rental property for years. We finally mustered up the courage and bought our first SFR rental property. The property needed some TLC, nothing too major, and took us about 8 weeks to complete and get our first tenant. I literally spent 30 hours straight at the property (early Sat morning to Sun afternoon) finishing it up before I handed the keys over to the first tenant.

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

Real estate investing has always intrigued me.

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

Foreclosure list.

How did you finance this deal?

25% down conventional on house and hard on rehab.

What was the outcome?

Two different tenants for two years and then the second tenant approached me about selling it...so I did...and moved on to a flip.

Lessons learned? Challenges?

Do a better job on timeline planning so I don't have to spend 30 hours straight wrapping up the house.