1st rental property

[Dan Mcknight]

Investment Info:

Single-family residence buy & hold investment in Cripple Creek.

Purchase price: $113,000

Older house that was slightly renovated by the previous owner. Good enough for me as single person to live in. Initially this was just a place for me to live in and later I decided to rent it out when I had to move.

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

I needed a place to live because nobody would rent to me and my St Bernard.

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

I found it on Zillow and told my real estate agent to get more info. I did not negotiate anything because I real did not know about negotiations.

How did you finance this deal?

VA Loan

How did you add value to the deal?

Over time I have replaced the AC, water heater, dish washer, car port, roof, and several minor fixes. If my tenant ever leaves, I will upgrade the kitchen, floors, and have an electrician inspect the wiring for upgrades.

What was the outcome?

So far, I have a happy tenant who has been there for 5 years.

Lessons learned? Challenges?

Raise the rent as needed. Open communications with property manager and tenant has led to a patient tenant when the went 2 weeks with no AC in June.
A very thorough inspection in the beginning is crucial to build a replacement plan for high dollar items such as the HVAC if they are aging.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did with with a real estate agent but I dint know if they provided much more than ensuring the paperwork was completed.