Updated almost 4 years ago on .
My first purchase (from November 2019)
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $38,000
Cash invested: $5,000
This was our first property. We put another $6,700 into the property and it currently exceeds the 2% rule.
What made you interested in investing in this type of deal?
I researched areas across the country looking at several factors: a strong rental market, a stable economy that wasn't dependent upon one or two major employers, purchase price to rent ratio, and available inventory of houses that need rehab.
How did you find this deal and how did you negotiate it?
When I decided upon Pittsburgh, I found a management company to start with. They tend to know the area, the rental market, and the people I would need to build my team. They put me in touch with a real estate agent that would help achieve my goals. My real estate agent understood what I was looking for and suggested this property (through the MLS). He has since found me several more houses through a wholesaler as well.
How did you finance this deal?
Private money.
How did you add value to the deal?
I addressed the safety concerns and some cosmetic issues. But overall this property was in pretty good shape for the age of the home. The seller was motivated to sell.
What was the outcome?
We rented the house on January 1, 2020 and the same tenants have been in place since.
Lessons learned? Challenges?
The lesson was that the concept was sound. This can be done and procrastinating would only slow down the process.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Absolutely! My agent is Ryan Shedlock with Howard Hannah Real Estate and he is great!