First rental property! Thank you Bigger pockets!!!

[Brett Pedigo]

Investment Info:

Single-family residence buy & hold investment in Kokomo.

Purchase price: $86,000
Cash invested: $15,000

Buy and hold SFR 3+2. Right on the nose of Brandon Turner's advice!!

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

We are blessed to have purchased our own home for our family in Los Angeles. Now we have begun our investing future. We are focusing on SFR and will adjust to the BRRR method in the future.

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

I found this deal through an agent. It's a hot market and I ran the numbers. I offered 8k over asking because the numbers worked. the house received multiple offers and I beat them out. I had the home under contract within 12 hours.

How did you finance this deal?

Traditional financing, but I was able to secure a 15% down payment on an investment. My lender is amazing and I highly recommend her!

How did you add value to the deal?

The home needs light rehab. Paint, small bathroom fixes. My brother is handling that aspect.

What was the outcome?

Tenants move in July 1! Cash flows nicely and we have reserves for issues if they arise. This is an exciting time. We are eagerly awaiting out first ever passive income check!!!!

Lessons learned? Challenges?

One thing I would have stood my ground on a bit more is the fixes to the home. Since it's a traditional purchase over asking, I asked for some patches to the roof and the non working fireplace. They offered a lowering of the purchase price to cover the cost. I allowed that. The owner was not feeling well (I think Covid). In hindsight, I would have stood a bit firmer there. But I wasn't going to let the home slip away for that.

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

I do! I would recommend my agent. He is mainly non investor for now, but he is money smart. He is looking to get into rentals and property management soon. As for my lender, She was incredible. Smart, funny, on top of things and really creative. She is the best!