2nd Rental Property Purchase

[Joshua Buchanan]

Investment Info:

Single-family residence buy & hold investment in Colorado Springs.

Purchase price: $190,000
Cash invested: $20,000

This home is a 3 bedroom, 1Bath, and one car garage single family home. This is a 985 SF home on a large lot. This currently has a shed in the back yard, which is currently used for storage. This home is currently equipped with solar panels installed on a stand in the yard that were left as part of the purchase of the home.

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

This made me interested for the proximity to 4 bases and ease of access to the local economy.

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

This was a deal that came about when I learned that a family member was looking to sale our family home and move to another state.

How did you finance this deal?

I financed this deal with a conventional loan.

How did you add value to the deal?

I have been working to landscape and I plan to replace the old carpet with some LVP.

What was the outcome?

The rate on the home ended up working in my favor, but I would like to see about reducing the rate further below 3.0% while the rates are still low.

Lessons learned? Challenges?

I am learning that I need to use a rental property manager. I am finding that renting to people I know is stunting my rental growth.

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

Yes, I ended up working with Community Banks of Colorado to secure my loan. I have had a good experience with them in the past when I purchased my first deal with a VA loan.