My First Rental Property Deal

2 Replies

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $105,000
Cash invested: $28,000

This first purchase was a home run for me. It was important that I had a significant equity position for my first deal. I am also still able to generate great cash flow on a 15-year fixed mortgage.

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

The deal was too good to pass up!

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

I fortunately knew the owner and was able to swoop in at the right time and take it off his hands. The owner was going through some personal distress.

How did you finance this deal?

Conventional 15-year fixed.

How did you add value to the deal?

Fresh coat of paint, deep clean, and updated the vanities.

What was the outcome?

A stable cash flowing rental property.

Lessons learned? Challenges?

I was a little exposed financially after buying and adding a little value to the property. Luckily I didn't run into any problems...but next time I'll have more cash reserves set aside.

Thanks @Zach Hoereth ! Its considered a single family home but just attached to another property. Its in a tight nit community that has an HOA. But its really low cost and they just take care of snow removal and landscaping. A lot of retired folks in that area so low turn-over!

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