First Home turned investment property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $245,000
Cash invested: $20,000
My first property, I lived here and kicked it over to a short-term rental manager after a year
What made you interested in investing in this type of deal?
Low cost of entry, I purchased on a VA loan and the interest rate was low still. Newer built home, I knew it would be fairly low maintenance to start out with.
How did you find this deal and how did you negotiate it?
I used a real estate agent that knew the area.
How did you finance this deal?
VA Home Loan
How did you add value to the deal?
It is a split level home, the basement was fairly small so I added a door at the hallway to turn it into the master bedroom with a private bathroom.
What was the outcome?
It does well enough on short term rental that it pays for itself and I net around $12k/year on it. This allows me to invest in other properties without using my own income.
Lessons learned? Challenges?
Short term rentals are intense, I would not want to do them without a property manager.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Shelly Helton (real estate agent). Matt Pesler - Grand Welcome of Cincinnati and Northern Kentucky (property manager)