Single-family residence buy & hold investment.
Purchase price: $182,500
Cash invested: $44,000
This was my first ever home purchase, an investment property, before finding Bigger Pockets. It was purchased on a 15 year note and is my retirement fund house. It doesn't cash flow much, but it doesn't need to for me. I manage it myself and have had the same great tenant since the beginning. It's a 1990 built home without much maintenance issues, and has almost doubled in appreciation in 5 years. It cash flows a mere $250 a month (not counting for any expenses)
What made you interested in investing in this type of deal?
It was an off market deal right next door to my other investments.
How did you find this deal and how did you negotiate it?
Off market from a neighbor. The seller named the price of $182,500 and I agreed.
How did you finance this deal?
Traditional 20% down on a 15 year note with large bank.
How did you add value to the deal?
New refrigerator and some new toilets, cleaned up the yard. It was in good condition.
What was the outcome?
Found a great tenant who pays down my mortgage.
Lessons learned? Challenges?
Listen to my dad. I wanted to buy lots of different houses before this one, but I waited until the right one appeared, and my dad was right.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Nope, it was an off market deal we found ourselves.
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