Rental property investment #1

[Brady W myers]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000

4 bed, 2 bath home section 8

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

Cashflow

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

My mom sent it to me on realtor.com and I ran the numbers which met my criteria. Listed for $89,900.00 I offered $72,500.00, found further issues and I asked to lower the price to $65,000.00. They agreed!

How did you finance this deal?

Private money

How did you add value to the deal?

Buying low, zero work!

What was the outcome?

Rented for $1254.00 (inherited tenants) purchase price $65,000.00 cashout refinanced, appraised for $117,500.00! Private money paid back 100% $0 invested!

Lessons learned? Challenges?

The house had a forgivable government funded loan on it. It ended up not affecting anything other than the house has to stay on the section 8 program and is rent controlled for the term of the loan which is forgiven in 8 years. Yeah.. didn’t see that coming as a newbie. I can’t complain though because it cashflows nicely since I bought it low!