Accidental REI..... Before Bigger Pockets

2 Replies

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,999
Cash invested: $12,000

This was my home that I lived in for 2 years then I moved out and decided to rent it rather than sell it... at the time all I looked at was does the rent cover mortgage and I am cash flow negative, but I didn't want to sell, and my intention wasn't to become an investor but it happened by accident. Theeeeeeeeeeeeeeeeen later on I found bigger pockets and now I am more knowledgeable.

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

This is when I became a REI by accident and I had no idea what I was doing.

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

I just drove by it once, they were building new homes... I was orginally looking for a place to rent but I saw it and decided to buy it.... The reason I didn't Sell is because if I hold it for 5 years I know it will appreciate in value more than the average because of the area.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

I added trees and grass to the back yard. I did some work in the front yard. The home was purchased brand new so it is in really good shape.

What was the outcome?

I have a 2 year lease that has 1 more year left.

Lessons learned? Challenges?

there are more expenses other than just covering mortgage.

It's all about the cash flow! 

Looks like you still own it? If so what's your plan moving forward?

@Taylor L.

Knowing what I know now..... I am going to wait and see how rent comps come up next year vs selling it and possibility doing a 1031....

But might also refinance it if rates are lower and it makes the cash flow pump. My goal is to see if I can get it to $300 Cash Flow.

But I am looking for more deals so I can do my 1st post bigger pockets deal.

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