My first buy and hold

[Jin Kwon]

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $42,000
Cash invested: $15,000

Our first rental property, lots of sweat equity put in but it cleaned up nicely

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

We wanted an inexpensive SFH that brought in the most rent as possible. We found this home in a "bad" part of Indy. Nice neighbors and children playing outside is not my definition of bad part of town. We saw some potential in a home wrecked by the previous tenants.

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

Found a real estate agent off BP and she started sending us properties.

How did you finance this deal?

Cash from the sale of our primary residence

How did you add value to the deal?

New roof, plumbing, new kitchen, new bathroom, paint, new floors, LOTS and LOTS of cleaning

What was the outcome?

Cash flowing very nicely and very happy with our first rental property

Lessons learned? Challenges?

Working in a new market is hard, but not impossible. Find a good Agent, PM and contractors, which was also not easy. But nothing good comes easy, right?

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

Katie Malott is our agent and now also our PM in the Indy Market.