Single-family residence buy & hold investment in Virginia Beach.
Partnered with a friend to buy a rental property that would pay for itself and have a monthly positive cashflow. No money down on the house with a +400/month covers the mortgage and is slowly building equity with very little input on my end.
What made you interested in investing in this type of deal?
Wanted a long-term store of value that didn't require a lot of time.
How did you find this deal and how did you negotiate it?
No real negotiation unfortunately, found it through a local realtor.
How did you finance this deal?
Bank financed mortgage
How did you add value to the deal?
Minor repairs, no serious value added.
What was the outcome?
So far it has gained value in the market and the rent covers expenses. Generally speaking it has fulfilled the limited aims that we set for the investment to begin with.
Lessons learned? Challenges?
The positive cash flow is often times eaten up by management costs and repairs (new fence, new carpets will be needed, plumbing, lawncare, etc) If we were more aggressive in how we negotiated and more specific with our vision/needs we could have found a property that offered a positive cash flow which would cover expenses and while also creating for us a passive income stream.
@G. Emerson Zollos Congratulations on completing your first deal! Now you've set the bar for yourself to do even better on future deals. Keep it up.
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