1st buy and hold property

[John Smith]

Investment Info:

Single-family residence buy & hold investment in 22031.

Purchase price: $500,000
Cash invested: $100,000

This was my very first property, I made a ton of mistakes but I also learned a lot from it. This was a bad buy and hold deal as I didn't have any cash flow after paying my mortgage. I should have just tried to flip this property instead. 

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

I wanted to diversify my portfolio and include both real estate as well as stocks. 

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

My parent's neighbor died and I offered their kids to buy the house at around 15% below market value with no contingencies at closing. They lived on the other side of America and wanted to sell it fast, so I was able to get a good deal on it.

How did you finance this deal?

I financed the deal using a conventional mortgage. 4.5% interest and a 30 year arm. 

How did you add value to the deal?

I added value to the house by doing some slight renovations inside the house as well as improving the curb appeal on the outside. It is in a very good school district so renting it out was very easy after doing some slight improvements.