First Single Family Rental

[Robert Gonzalez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $279,000
Cash invested: $33,000

This is a 3/2 ranch in Montgomery County, PA, very close to Philly. It was renovated in 2016 and is nice and shiny. This was our personal home and now is rented out and has a great tenant.

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

We bought the home to live in as it was well priced in a great neighborhood. We kept it to rent out when we moved away as homes were in high demand and we wanted to continue to see it appreciate.

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

This was found on the MLS.

How did you finance this deal?

Traditional home mortgage, owner occupied with 10% down.

How did you add value to the deal?

We replaced a roof and sewer line, which needed to be done. The house was otherwise perfect.
THe home has appreciated about $50k in the past 3 years.

What was the outcome?

The home cashflows $450 a month with minimal effort.

Lessons learned? Challenges?

We have a crappy PM at first, which was non-responsive and expensive. They also couldn't rent the place. We found a better one and that has made all the difference.

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

Our property manager is pretty good. I would recommend them to anyone that wants to be hands off or is not local.