1st Investment Property

[Kevin Ros]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $16,000

This property is a 3:2 is a C class neighborhood. The tenants came with the property and have been there for 18 years. I'm praying for another 18. It is located about 1 hr from my house but so far with me self managing it, I haven't seen any real difficulties with it.

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

Well...I found myself getting caught up in analysis paralysis and when this deal came up I told myself if it cash flowed at least $200 before being able to refi then I was going to make it happen.

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

After networking with other investors and wholesalers I actually go lucky and found this deal through my wife's co-workers. 1 veteran investor was selling off pieces of her portfolio and she was okay with me buying just one of the 4 houses she was trying to sell since it was my first deal and she was excited for me to get started.

How did you finance this deal?

Cash with a partners money. My plan was to refi out at my assessed property value to semi BRRRR but the banks appraiser was to conservative to see the value the way I had analyzed. I bought this with a convential 20% down lown. After closing costs of the original purchase and the refi I was all in for $16K. Not what I had planned but it still cash flowed over $200/month.

How did you add value to the deal?

I have done nothing to the property to add value. My hope is that I can have a new HVAC installed and some minor paint to get a true appraisal once I've owned it for the "seasoning period" and refi to get my money for repairs back. I would only do so if the tenants want the new unit and agree to move rents up to market ($800). This would strengthen my cash flow to $300+/mo and give me the opportunity to pay off quicker.

What was the outcome?

I'm self managing some great longstanding tenants that care very much for the property and I make $200/month in passive income.

Lessons learned? Challenges?

JUST JUMP IN! Learning about the seasoning period for a true refinance was a tough pill to swallow.