First Investment Deal!

[James Smith]

Investment Info:

Single-family residence buy & hold investment in Tallahassee.

Purchase price: $169,000
Cash invested: $42,475

This property was my first investment deal. It was a base hit! It sat vacant for a while because I listed it in February, and might have over priced it. It's rented for $1500 and the PITI is $787. The tenant is reliable, but a little high maintenance. Good problems to have!

This property is in Tallahassee, and we've seen appreciation! Different websites estimate between 5% and 10% appreciation in a year! Fired up!

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

I understand single family well. I also am very comfortable with the financing of single family deals!

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

I found it on the MLS! I actually got a $3500 seller credit after the inspection showed some repairs. I think the previous owner was rehabbing and ran out of money! Score!

How did you finance this deal?

Conventional Mortgage with my guy at Loan Depot. 25% down. 3.625% interest rate!

How did you add value to the deal?

I just got it ready to rent! Finished a bathroom and put up some shelves. Very basic stuff.

What was the outcome?

I have a very reliable tenant who pays almost double the PITI!

Lessons learned? Challenges?

I probably should have listed the property for rent while we were under contract. I initially priced it at $1700 which was too aggressive at the time. I think I could have avoided a couple vacant months if I priced it more reasonably!

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

Nick Hague from Loan Depot and Bruce Foster from the Big Bend Group! Give them a google!