First Investment Property

[Doug Spence]

Investment Info:

Single-family residence buy & hold investment in Pensacola.

Purchase price: $198,000
Cash invested: $45,900

This is the first property I purchased. I lived in it for about two years and have rented it out to long-term tenants since September 2018. Before I rented to long-term tenants, I rented out the home via Airbnb (while living with my now-wife).
It has been much more profitable than I expected! In 2019 I had a 20% cash on cash return.

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

I didn't know a lot about real estate when I purchased this home, but I knew I would be able to rent it out for a few hundred dollars more than the mortgage. I purchased the home with the intent of holding it for a long time and generating passive income for me.

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

Local real estate agent! They reduced the price 10k because we knew it would need a new roof within a few years - which it did.

How did you finance this deal?

Conventional loan. 3.625%

How did you add value to the deal?

N/A