Becoming a Landlord for the First Time!

[Account Closed]

Investment Info:

Single-family residence buy & hold investment.

3 bedroom, 2 bath, 2 car garage, 1410± sq ft, 7800± lot. Built in 1987.

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

To supplement my W-2 income and ultimately carve a path to financial freedom.

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

My first home. An REO. I accepted their counter offer. They covered a lot of repairs, though the house was still ugly I have since beatified it. So satisfying to create and witness the before & after.

How did you finance this deal?

Low down payment to utilize as much leverage as possible in order to retain capital for future acquisitions. Yeah, yeah that's it, not because I was broke or anything. I swear.

How did you add value to the deal?

Market timing was coincidently great, appraised high, been enjoying watching the equity climb steadily over the past 6+ years. Had to sit on it awhile then was finally able to spruce it up and get it rent-ready.

What was the outcome?

Beautiful house I am proud of with happy and reliable tenants. I finally achieved my long-awaited goal of becoming a landlord and real estate investor. Even though I only have one (so far!!) I run it like a business 100% and am setting the stage for more to add to my portfolio!

Lessons learned? Challenges?

Don't get emotionally attached. Probably should not have put in a farmhouse sink but it sure looked good. I knew even then it was going to be a rental but I still got the fancy sink. I don't even get to enjoy it now so not a good idea to splurge on an intended rental. But it was my very first house and I went for it anyway. I know better for next time.

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

On my first house I used Guadalupe Perez of Galt, she was great. Second house, Ken Jamaca of Roseville. Both solid agents. Ken is now a broker.