The Almost Accidental Landlord
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $292,000
Single family home in highly desirable neighborhood that's "close to everything".
What made you interested in investing in this type of deal?
I didn't originally but this home as an investment. I owned it prior to my wife and I meeting and when we got married, we decided to keep it and try our hands at being landlords. It is our first rental.
How did you find this deal and how did you negotiate it?
Found through a retail broker that happened to be a friend.
How did you finance this deal?
I purchased the home on a VA loan with no money down (I lived in it for the first few years I owned it). This makes running any cash-based financial metrics a lost cause...my returns are infinite-ish.
How did you add value to the deal?
Did some do-it yourself upgrades while I lived there and have stayed on top of maintenance and any needed upgrades since. Am currently preparing architectural plans that, when completed, will allow us to raise the rent ~$700-900.
What was the outcome?
Has been a strong property for us with good returns. Value of property has almost doubled in the ten years since I purchased it. Used a HELOC on this property to buy our second single family buy and hold. More importantly, it has helped me get my wife comfortable with REI.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Used a friend as my buyer's agent.