Our First rental property....

1 Reply

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $130,000
Cash invested: $5,000
Sale price: $230,000

3/2 1400 sqft sfr

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

It was 2009 during the financial crisis and houses were cheap. We wanted to get out of our apartment and get into something bigger to start a family. The investing part of the home wasn't even in our view at this point of our lives. It developed into a rental opportunity when we decided to start a family and it just went from there in our investing experience.

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

We found it through traditional means via a realtor in the MLS.

How did you finance this deal?

FHA with first time home buyers 3% down @3.25%

How did you add value to the deal?

We updated the counter tops to granite and rented it out soon after that. After two years of renting the property we upgraded the floors from laminate to ceramic tile and update some fixtures like fans and faucets.

What was the outcome?

We got full asking price with only one concession of a $500 home warranty.

Lessons learned? Challenges?

Looking back If we had used PM instead of self managing it would've stayed within our investment portfolio.

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