Our first deal, OOS REI

7 Replies

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $181,000
Cash invested: $46,000 (including loan and closing costs)

This is our first investment property. We live in CA and are investing long distance.

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

We wanted a good cash flowing property in a growing market.

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

We found this deal on the MLS. It was for sale by owner. We payed the asking price. Originally a cash buyer beat our offer, but their offer fell through.

How did you finance this deal?

We put 20% down and are using a mortgage company at a 3.5% interest rate.

How did you add value to the deal?

Minor fixes. Installing washer/dryer and garbage disposal.

Lessons learned? Challenges?

Challenges... it is in a flood zone. We obtained a certificate of elevation to help lower our flood insurance.

Congrats on your first deal. Do you mind if sharing your experience in finding the teams that help you fix/and manage your property? I am looking to invest OOS and currently reading the book by David Greene. How long does it take  you to find this property?

@Duy Nguyen So sorry I am just seeing this. We found an amazing real estate agent, Patricia Steiner. From there, she helped us to find a contractor, plumber, and electrician. We are going to be managing our property from out of state. Our rehab costs were under $2,000. It took us all summer to find this property actually! It was on the market for less than a day. I would suggest that you have a pre-approval letter from your bank when making an offer. That lets the seller know you are serious and can move forward ASAP. Let me know if you have any more questions. 

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