Nailed the first investment property?
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $86,000
Cash invested: $2,500
After being done with Rich Dad, Poor Dad, several podcasts (including bigger pockets), and other resources we were desperate to take action. My husband talked to his boss to see if he was interested on selling a small vacant house he owned, and we got it! He ran the numbers, we used a calculator to run numbers for rental or flip property, and the math made sense. We are cashflowing approx $520/mo. Thanks be to God.
What made you interested in investing in this type of deal?
Single family house, which required smaller down-payment and little cosmetic repairs. Plus, we had a family in mind that were looking to rent a house.
How did you finance this deal?
Conventional mortgage with 20% down
How did you add value to the deal?
We asked the owner if we could start painting the house before the closing date... Could've been risky, but we were eager to work on the house. At the closing date, we had a tenant ready to move in.
What was the outcome?
Achieving a great cashflowing property, learning the process while executing, and great satisfaction of helping a family.
Lessons learned? Challenges?
We initially wanted to get a $190k house to fix&flip, which could've been a nightmare and was from HUDhomes... It was great to get our heads in the game, and got us to move quicker to get a house (since we were basically forced to get a pre-approved loan in order to tour houses...). Also, our market has many First time home buyers, so to fix&flip we needed contractors which required much more $$. So for our deal, even if it was cosmetic changes it took us a lot of hard work.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I recommend talking to people and asking around. In our experience, investors like to sell houses before putting in the market.