Updated 2 days ago on .
My First Investment
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $113,500
Cash invested: $28,564
This is a mobile home converted to a single family residence (title deed removed), 3/2. I started purchasing this property without having really figured out how to work in real estate yet and was still learning and it was before I really knew what "running the numbers" meant. I have positive cashflow though not much, so I consider this a very small win.
What made you interested in investing in this type of deal?
At the time of negotiations, there were hardly any properties available for sell in my area and this one met the criteria I needed as a turnkey.
How did you find this deal and how did you negotiate it?
Found it on Zillow. I had a compete offer so was only able to get it down by about 5K. The only reason the seller accepted because he mentioned a second property he is selling next that I ended up agreeing to as well.
How did you finance this deal?
Conventional loan but at a high rate of 7.5%
How did you add value to the deal?
This one I did not need to right off the bat but I just finished making a new set of stairs and very small deck.
What was the outcome?
I purchased it and within 8 hours had a renter applied, he met all my criteria and had him moved in within a week.
Lessons learned? Challenges?
Not to rush a deal and educate myself a bit more beforehand. Biggest challenge though was the even though the county recognized it as a SFR (title deed removed) the banks and insurer still see it as a mobile home.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Tom Harrison was the realtor and he was fantastic to work with as well as the lender I used United Wholesale Mortgage LLC.