My First Single Family Rental (16 Months Ago)

[Hayden Bowles]

Investment Info:

Single-family residence buy & hold investment in Gilbert.

Purchase price: $405,000
Cash invested: $26,000

First property I bought, goal was to breakeven here while putting the smallest amount down. Appreciation in this area is nuts. 2-3 year hold. Currently appraised at $475,000.

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

good way to get my feet wet, it was slightly under market value in the 2nd rated neighborhood. Was confident in the growth and the rental, even though rental income is nothing crazy.

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

On-market, new listing. Multiple offers but I offered list and got closing costs negotiated

How did you finance this deal?

30 year fixed, standard 5% down on my first personal property (yes I spent time in this property personally - house hacked). Bought it solely with the appreciation intention and knowing it would be a rental

What was the outcome?

$70,000 equity gain in the first 12 months, now it cashflows a few hundred a month. Goal here is a 2-3 year hold.

Lessons learned? Challenges?

Single family like this is boring. Probably won't be doing it again, but great way to get my foot in the door and I got value out of living in the property for a period of time (house hacked).