1st investment property

[Ken M Middleton]

Investment Info:

Single-family residence buy & hold investment in Phenix City.

Purchase price: $85,900
Cash invested: $27,341

1st investment property. Purchased for 85,900. Pretty much move-in-ready but had to do about 5600 in cosmetic and electric work; Renting for $850/month and self-managing for a monthly cash flow of $189.

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

We were really looking for something rather easy for our first buy. We didn't want to have to do too much rehab work before being able to move in a tenant.

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

We found it through searching on-line with Zillow and Realtor.com.

How did you finance this deal?

Convention financing with 20% down.

How did you add value to the deal?

We improved some bad electrical work (a two-pronged system that wasn't grounded) and did some light cosmetic paint as well as added safety features in a few areas.

What was the outcome?

We were able to rent it out for $850/month.

Lessons learned? Challenges?

You have to make sure to double and triple-check the SOW that you sign off on with your contractor.

Even though you know you talked about something being included in a certain price, if it's not on there, they will charge you extra based on it not being on what was signed off on.

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

Yes. Tiffany Macmanus in Columbus was great.