My first investment property

[Stacey Matsuda]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $137,000
Cash invested: $35,000

First rental property, 3/2, one level, detached building, fenced yard, detached metal carport

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

Rent in this area is high priced and options for SF houses that allow pets are limited, other rentals nearby, location, fenced yard so we could offer pet friendly rental.

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

I am a real estate agent, the previous buyer's financing didn't work out and this came back on the market. My husband, who is a mortgage lender, wanted to start investing and after seeing the property, we felt like this one was a good starter. I have a past client, friend, that is in Property Management and ran the numbers for us. We were able to get some repairs done quickly and had it rented almost exactly one month after the purchase.

How did you finance this deal?

Investment loan through my husbands mortgage company and we opted for 25% down to get the best possible rate.

How did you add value to the deal?

My value is my market knowledge and you can't put a price on almost 20 years of being an agent in the area.

What was the outcome?

After the inspection came back, we negotiated an additional $3000 off the property in lieu of repairs.

Lessons learned? Challenges?

In speaking with my property manager, I am 100% glad that she is handling this and we look forward to both growing our real estate portfolios. Seller left TV's in the home, when they were removed we found the TV's were improperly wired directly into the outlets and painted around. Kinda weird!

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

While some investors shy away from using agents, the right agent can bring a lot of knowledge into a deal. The main thing is making sure you have a qualified investor before wasting a lot of time with them. Financing must be in order, in writing before any work begins. My husband is a Branch Manager for Fairway Mortgage and their corporate lender did the transaction and they did it QUICK!