First investment purchase

[Rachel Olson]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $342,000
Cash invested: $112,000

Our first investment property. We purchase in 2010 and turned it into a rental in 2013. We have been making steady rental income on this for over 10 years and about ready to 1031 it.

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

We purchased as our first primary home and converted it to a rental.

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

On market, distressed seller. Negotiated a good amount off the listing price.

How did you finance this deal?

Conventional financing with a bank

How did you add value to the deal?

fantastic rental cash flow. It was new construction when we purchased it so not much needed to be done. Just maintaining it.

What was the outcome?

We have rented this property for 10.5 years, averaging around $3,250/month in rental income. That's over $400k in rental income received on this property.