My First Investment property

[Reed Larson]

Investment Info:

Single-family residence buy & hold investment.

Long- Term buy and hold that I partnered with right when I turned 20. I brought the deal, maintenance and management. My partner who is out of state brought the financing. Currently cash flow roughly 500 a month

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

I lived in the area as a college student and saw the opportunity that college rentals have. When walking through the property I made friends with the tenants and decided the numbers looked great for a property that I see having great appreciation in the future.

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

I found this deal with my mentor and we were able to negotiate it down roughly 20k because we purchased right before winter and the owner wanted to get out of the area.

How did you finance this deal?

I financed this deal by getting a partner into the deal who is from out of state. They believed in me and were able to use a HELOC to finance the deal.

How did you add value to the deal?

I added value to the property by cleaning it up and doing minor rehabs to it because it had already been newly remodeled.

What was the outcome?

The outcome so far has been a lot of ups and downs. After the lease was up for the inherited tenants they decided to not resign. This was my first time having to vet tenants and I was able to land a great set of tenants who signed a three year lease!

Lessons learned? Challenges?

I learned that vetting tenants is very important because I almost made a huge mistake with another set of tenants but luckily figured it out and avoided a huge headache. I learned that honesty and friendliness is key to having a great tenant relationship.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My mentor is a broker and he helped me a lot through the process. I am now an agent myself, along with being a contractor.