First Investment! - 2BD/2BA Single-family Home in Alaska

[Clara L Trefts]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $193,500
Cash invested: $20,000

My first property! I purchased this single-family residence in 2021 for about $50,000 under the appraisal value. I had goals of getting into real estate for years, and this was the perfect first time buy. It needed minimal renovations, and I lived in the home for a few years before I purchased my next property and started renting it in March 2024. This home introduced me to the life of property ownership, being a landlord, and taught me many lessons as I started my real estate journey.

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

I wanted to get into real estate for years before this buy, but I didn't have any experience and wanted to start small, learn, and scale along the way.

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

I found this deal off market, through my full-time job, and wanted to get my first property under my belt. The seller inherited the home from their recently passed father, and didn't want to keep the home. I was able to close at $52k under the appraisal value in a market where many people were offering $20-40k over appraisals.

How did you finance this deal?

I used a VA loan to finance this deal with no money down.

How did you add value to the deal?

I was able to add value with minimal renovations and through smart negotiations to close with equity in the home. Before closing, I negotiated installation of a whole home arsenic filtration system, replacement of the water heater, hardwiring of the smoke detectors, and some additional smaller repairs. I replaced the driveway, painted the entire interior, and remodeled both bathrooms.

What was the outcome?

In the three years since I purchased the home, the value of the property has increased from $193k to $344k. I currently rent the property out for a profit of $700 - $800 per month. I took out a HELOC on this investment before I purchased my second property and intend to hold this investment.

Lessons learned? Challenges?

I needed this property to get me in the door with real estate, but I learned how challenging it is to scale a real estate portfolio with single-family homes. I have since purchased a four-plex and I now have my sights set on the multifamily real estate sector.