First Investment Property

[Sierra Ortiz]

Investment Info:

Single-family residence buy & hold investment in Ypsilanti.

Purchase price: $129,000
Cash invested: $16,000

I bought this house a little over two years ago with intentions to live in it long term. With a little mindset shift, I've now realized how powerful this house can be in my real estate portfolio. It has great bones. It needs a little work; however, the markets are rising in this area, and I've built up some equity. I have remodeled the upstairs with hardwood flooring and fresh paint. I am in the process of remodeling the bathroom. The kitchen will be remodeled last. I currently rent the upstairs out for $575 while I live in the bottom. I'm using some of the BRRR strategy with plans to rent the entire thing out by the end of 2021. I will get between $1200 a month to $1500 as a rental. I made a lucky, good purchase at 23 and eager to acquire more.

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

The location; the property sits in a neighborhood full of homeowners outside of a double college town and 30 minutes from downtown Detroit.

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

I negotiated with a letter to the seller.

How did you finance this deal?

I got a conventional loan with a small percentage down.

How did you add value to the deal?

I was able to convince the seller how much the property would mean to me if I was able to raise my family here.

What was the outcome?

I got the deal; although my living situation has changed, this purchase has catapulted me into real estate.

Lessons learned? Challenges?

I need to make sure I figure out the Cash on Cash Return on Investment before purchasing next time. I got very lucky with this property, and I don't think I will again. The market here is absolutely nuts. I submitted 6 offers that fell through before I got this house. I just wasn't fast enough. I also had a good house in this same neighborhood that failed a home inspection. Do not wait. Be thorough. Then act quickly and make sure you have a good real estate agent to get the deal done.

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

Hinton Real Estate Group and Select Title Agency