First Rental Property

[Jamal Fontenot]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $11,475

Bought this property off the MLS. Listed at 155k, negotiated down to 145k. Was move in ready other than small updates made (updated kitchen faucet, updated bathroom light fixtures, updated bathroom mirror in masters, updated a/c thermostat ). I also added some granite wallpaper to the kitchen and some backsplash wallpaper. The house was a older house so I wanted to make sure i gave it a new feel as best as I could. It was move in ready when i got it and appraised for 167k(22k in equity). The PITI is $1078.49, with a interest rate of 2.875. We are currently renting it out at $1400.

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

It had a lot of equity in the deal and was move in ready. We spent a total of maybe 1k in updates for the house.

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

It was on the MLS and the seller took our offer of 145k

How did you finance this deal?

I used an FHA loan. lived in there for a few minutes, decided it wasn't the house for me and then i put it up for rent. I had the cash reserves for downpayment and closing cost saved up.

Lessons learned? Challenges?

I think the biggest lesson i learned was, there is no perfect situation. You have to be confident enough to believe you will make away, humble enough to have done your due diligence and figured out the worse case scenario, and lastly you have to have atleast one exit strategy.

[Jamal Fontenot]

Thank you @Joseph Firmin. I will definitely be doing that. I plan on leaving all cash flow from it in the account for any expenses that come up. I do self manage as of right now. once I get to around 8-10 I plan on getting a property manager. Currently trying to find a way to use the equity to fund my next deal. Thank you @Andrew Syrios