Updated 3 months ago on . Most recent reply
First buy & hold
Investment Info:
Single-family residence buy & hold investment in Orange.
Purchase price: $135,000
Cash invested: $12,000
Buy & hold in my hometown (I currently live out of state).
What made you interested in investing in this type of deal?
Knowing I have family in the area that can easily drive by the home and make sure it's in good condition meant a lot to me. I also wanted to tax benefits of writing off the travel expenses anytime I went to visit family/check on my investment.
How did you find this deal and how did you negotiate it?
Because I grew up in the city I bought this home in, I knew the area very well and had 3 of my Core 4 already identified that I worked with to bring this deal together.
How did you finance this deal?
Originally bought this home in 2023 at a 7.5% interest (and going to refinance when rates are at or below 5.5%).
How did you add value to the deal?
New roof, new appliances, new landscaping.
What was the outcome?
$490 cash-flow monthly. I have had 100% occupancy rate.
Lessons learned? Challenges?
This was an "easy" choice for my first out-of-state investment, but going forward I'm going to be looking for equally affordable markets and building my Core 4 to bring deals to me. I knew what I was getting into with this market, and it has an extremely high insurance rate compared to other areas in the country. Because I felt comfortable with the area, I bought, but will look for better math in the future.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a great agent and lender. DM me for contact info!