My first rental property purchase
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $140,400
Cash invested: $40,500
Townhouse: 2 BR, 2.5 BA
What made you interested in investing in this type of deal?
This is my first purchase and I wanted the process to be simple, especially since it is 1,200 miles away from where I live. The property is newer (built 2006) with a near perfect inspection report and in a desirable neighborhood. Most importantly, the property should cash flow approximately $2,500/year.
How did you find this deal and how did you negotiate it?
I found the property through Roofstock.
How did you finance this deal?
Convential Loan with 25% down
How did you add value to the deal?
No value added. However, I believe it can be converted into a 3 bedroom. Before I sell the property, I will investigate the possibility of converting it to a 3 BR.
What was the outcome?
Waiting for a tenant
Lessons learned? Challenges?
Just as any home buying experience, there are a lot of moving parts. Since this property is out of state I had to rely on the team members to get their piece completed. Overall, the process worked fine with a few hiccups.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Roofstock was a good resource and the mortgage company, Cross Country Mortgage, was easy to deal with