This was my first investment property. I was starting college in 2016 and didn't see the point of paying the insanely high premiums to live in on-campus dorms. After I started searching for a house to rent I realized that all housing near the university was so inflated! I thought to myself I could buy a house and rent it out to my friends/roommates and they would pay the mortgage for me plus some. This was a beautiful property for the town. It was located 3 blocks form the university and nightlife and also right across from a park.

I still own the house today and rent it out to younger kids that I knew through my hometown. They pay $500 dollars monthly and the house fits 5 tenants so it grosses $2500 monthly. This was the best investment I have ever made and I nearly have the house half paid off 5 years later. It also has appreciated at least $25,000 since I bought it.

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

My parents have always invested in real estate and I thought to myself what if they had started at my age.

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

We searched for about 1 month and after looking at about 6 different houses we found the best one by far. The List price was $205,000 and we offered $185,000. To which they countered and we eventually settled at $193,000

How did you finance this deal?

I put $10,000 dollars of my own money down I had saved up. We went with a 10 year balloon loan amortizing based on a 20 year schedule. I was fortunate enough to have my parents co-sign on the loan for me.

How did you add value to the deal?

I did many renovations on the house while I lived there throughout college. I redid both bathrooms completely including the showers/tubs. Replaced all water and lighting fixtures. repainted the entire house. Added landscaping throughout the yard especially near the front door. Reseeded and fertilized the lawn yearly.

What was the outcome?

I still own the house today and it is making me even more money now that I'm not living there.

Lessons learned? Challenges?

I learned that a lease is very very important. I came across an issue more than once where one of my friends did not plan on attending college the next year. This bit me one time and I ended up losing $6,000 over the course of a year. I made sure from that point on, friend or not, they HAD to sign a lease.