Investment Info:
Single-family residence buy & hold investment in Thousand Oaks.
Purchase price: $530,000
Cash invested: $1,000
Just closed on my first property, a SFR in SoCal. I am currently rehabing the home before I rent it out, which will have an ARV between $680-700k after bout $25k in the rehab. So after the refi, I should have 22-24% Equity and still will be cash flowing by around $200, if all goes well. Maybe not the best deal, but for Southern California, I don't think its too bad. I figure at least I got started and it should be a great property to hold on to if nothing else.
What made you interested in investing in this type of deal?
Very interested in the BRRRR strategy and this property pretty much fell in my lap so I took a chance. Property is also very close to a smaller university so looking into student housing as well.
How did you find this deal and how did you negotiate it?
Close family friend is retiring and scaling back and wanted to sell it quickly without hassle. I talked her down as low as possible and was able to use a "gift of equity" since she sold it for below the appraised value, which covered my down payment.
How did you finance this deal?
Conventional
How did you add value to the deal?
In process of updating kitchen & bathroom plus new paint and flooring throughout
What was the outcome?
Currently in rehab phase, so we'll see!
Lessons learned? Challenges?
Lots! I've been watching podcasts and learning all I can for over a year, though once you jump in, thats when all the questions emerge that you have to work out. So learned the mortgage/purchasing process, working the numbers, and now learning a ton doing the rehab.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No agents. Used Quicken Loans, which so far I am happy with.
