Our First Rental Property

3 Replies

Investment Info:

Single-family residence buy & hold investment in Spanaway.

Purchase price: $375,000
Cash invested: $375,000

First Rental Property
5B/3B/2Car
2900sqft
Open concept floor plan
$2800 month
close to JBLM, Tacoma, Seattle, Mt. Rainier
Great neighborhood, good school district.

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

Listening to BiggerPockets and reading Rich Dad Poor Dad

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

We had already purchased this home back in 2015. when we came across Bigger Pockets in 2019, we started trying to figure out how to get moving in our investing journey. So naturally we decided to move into a Renovation home while renting our home.

How did you finance this deal?

This home was bought with our VA Loan

How did you add value to the deal?

We did a few upgrades to make this rental friendly. The neighborhood is military friendly, so naturally easily rented out.

What was the outcome?

Putting this home up for rental was a fairly easy process, using what I learned from BiggerPockets and what I learned as a Real Estate Broker. Rent is $2800, cash flow of $500. No shortage of renters when you live close to a military post.

Lessons learned? Challenges?

Lessons learned
1. Always use the screening process
2. Do not listen to the sob stories, essentially this is a business not a charity.
3. Being upfront puts everyone on the same page

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Real Estate Broker

Updated about 1 month ago

Cash Invested- not $375,000. That was my mistake, we used a VA Loan for the Purchase.

Hey @Evangelyn Major , you stated that the purchase price was $375k and the cash invested was also $375k. You also mention purchasing with a VA Loan... Is the home paid off now? Just curious because you said that the cash flow is only $500 per month. The numbers are a little confusing.

@BradleySriro So we still owe on it but make two payments (Full Payment on 1st and a half on the 15th. 30yr treating it like a 15yr, not sure if that makes sense?) I didn't catch my mistake with the cash invested. Thank you! I need to correct that. The $500 is what we have left over each month after mortgage is covered, that is building up for any unknowns that will pop up with this rental.

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