First Rental Purchase - Single Family Home

[Holly Lucas]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $15,000

First rental property. Purchased this property, refinanced 12 months later and recouped cash investment and additional $15,000 which was used to purchase another rental property

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

Located the deal on MLS and worked with realtor who we now have an established relationship with that has assisted with future deals. Asking price was $45,000. Property had been on MLS for approximately 75 days. Offered $30,000 and seller accepted with no counters.

How did you finance this deal?

Cash deal by pulling money out of our home equity line of credit on primary residence

How did you add value to the deal?

Gutted bathroom and kitchen. Replaced portion of roof. Raised cement deck off kitchen. Fresh paint and new carpet.

What was the outcome?

Rented for $800 plus utilities