My first investment purchase!

[Holly Smith]

Investment Info:

Single-family residence buy & hold investment in Mobile.

Purchase price: $115,000
Cash invested: $30,000

3/2 home in west mobile. In great school district, close to airport, coast guard, and University! My first investment and so far its doing great!

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

It was much more affordable than where I live and the entry price was a much less scary number and lower risk. It made the 1% rule

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

I found on MLS with my agent, and was encouraged by the property manager I found (Kari Piecuch with 1 South Property Mngt) that this would be a hot buy, good area and good rent value.

How did you finance this deal?

conventional with 20% down @ 3.65% as investment property

How did you add value to the deal?

Put in about 2k in contractor repairs, materials, blinds, landscaping, and a tub re-glazing

What was the outcome?

Next business day after closing, the property manager had contractor in there, and it was rented by the following weekend! Even better we get a little more for rent monthly because of a pet fee which is fine because it has a big back yard and all tile.

Lessons learned? Challenges?

Should have pushed back a bit more to know the water heater and HVAC installation dates. They must be old because there were no records, the previous owner "did not know" or just didn't disclose which means they are easily over 10 years old and will likely be a big cost coming my way. But it was a hot market and I took that risk to have a compelling offer.

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

Kari Piecuch with property management - what a star!