My First Investment - Oklahoma City
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $77,000
Cash invested: $13,000
2 bedroom, 1 bath, 1 car garage, 720 sq ft built in 1949
What made you interested in investing in this type of deal?
My boyfriend wanted to move to OKC and I want to start investing in real estate. We chose this house because it was very inexpense and didn't need much work. So the monthly rent I charge him can remain low. It's just a starter house to get him moved out there. Once he finds his own place to buy, I may fix this one up a little more and charge a higher rent.
How did you find this deal and how did you negotiate it?
Kept watching realtor.com for inexpensive houses that didn't need much work which started giving me a feel for what was a good deal. After watching for a month, this house was listed. Multiple offers came in on the first day listed. But mine was all cash so I got it.
How did you finance this deal?
All cash. My ex and I had 7 doors. He bought me out to keep those properties so I'm starting over from scratch. I have enough to pay cash for a couple more properties, or use as down payments on several more. Just trying to learn and make educated choices.
How did you add value to the deal?
I'm new to investing on my own, so not sure what to write here. But my realtor was able to negotiate two new window heat/cool units, have a few water leaks fixed; and a gas shutoff valve installed, all paid for by the seller.
What was the outcome?
My boyfriend will move from California to OKC in a few weeks to rent this house from me. Although the monthly cash flow and ROI is low ($439 and 5.75%) this was a good way for me to dip my toe in the water on investing out of state. After fixing it up a little, I plan to refinance and pull equity out to put towards more properties.
Lessons learned? Challenges?
Lessons learned so far is that this place feels a little too personal since my boyfriend is moving in. Without him involved, I would have purchased something with a higher rental income potential. I have found myself wanting to spend more necessary on nicer things for the house. I need to keep that in check and remember that it's just a rental and not for me (although I will visit haha). The rent rates in the area are low and so I need to keep that in mind and keep my repair budget in check.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Robin Dennington was my agent and she was absolutely amazing! I had so many questions since this was my first time purchasing a property on my own, as well as my first time purchasing outside my home town. She answered all my questions, gave her opinion and advice, organized all the inspections, asked the seller to pay for things, took extra pictures, communicated during late night hours because of the time difference, and the list goes on. I will definitely use her again in the future
