Investment Property #1 and how i did it.

[William Kaniho]

Investment Info:

Townhouse buy & hold investment in Jacksonville, North Carolina

Purchase price: $78,000
Cash invested: $8,000

First investment property that I bought under market value and planned to update with paint flooring and fixtures. Then an unexpected HVAC replacement put me over budget

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

I was focused on cash flow and this property was in an area where at the price of the property left room to rehab and cash flow a good amount while forcing appreciation. Another interest I had going into this deal was the surrounding areas such as a military base, the mall, downtown. Knowing that there is a high demand for living near these locations. Also an added plus is the HOA takes care of lawn maintenance and pressure wash the exterior.

How did you finance this deal?

I utilized a VA loan because I didn't have enough money saved up at the time to purchase when i found this home.

Lessons learned? Challenges?

From the start I had a great agent i let her know of my goals and lack of experience. Although the process for buying a home may sound simple there are a lot of hoops to jump through and having an agent that can guide or explain to you the process can alleviate some stress. One thing that took a lot of my rehab cost was the HVAC system it needed to be replaced right before I moved out to rent it. Now i will pay for an in-depth inspection of future HVAC systems.