My First Rental - Single Family 3/2
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $150,000
Cash invested: $30,000
1975 Ranch style. The house was in good condition but dated (dark paneling, wallpaper...) with trees and bushes covering the entire front of the house. It sat on the market for several months, and my offer was accepted. We cleared the trees, and have updated the residence - new flooring, paint - and will repaint the baths and kitchen cabinets July 22.
What made you interested in investing in this type of deal?
It was a student rental for my son and got me started in investing.
How did you find this deal and how did you negotiate it?
MLS. It was a rental but not selling because trees and brush obscured the entire front of the house. I looked at it several times before making an under-asking price offer, which was accepted without negotiation. I found it helpful to learn a bit about the seller, a veteran, so we had a connection in that regard. Writing a personal letter helped.
How did you finance this deal?
20% down investment loan.
How did you add value to the deal?
Interior updates, landscaping
What was the outcome?
So far so good. It's renting well and cash flow is above average.
Lessons learned? Challenges?
As my first investment I was sweating too much small stuff; had to overcome analysis paralysis and admit I couldn't predict the future.