Updated about 1 month ago on . Most recent reply
First Investment Property - post from profile setup
Investment Info:
Townhouse buy & hold investment.
Purchase price: $317,000
Cash invested: $95,100
2 bed / 2 bath townhome in an area near easy access to major roadways.
What made you interested in investing in this type of deal?
This was our first rental property. My thought process was something easy to maintain without a big rehab need. So we looked for townhomes/condo's where an association maintained the outside. The inside was pretty much new. New floors, HVAC is only a couple of years old. New washing machine and dryer.
How did you find this deal and how did you negotiate it?
I found it on realtor.com I believe, or zillow.
How did you finance this deal?
I started an LLC, so I'm paying about 1 point higher on the interest rate than if I had purchased it on my own.
How did you add value to the deal?
We didn't do anything to add value to the deal. All we did was change out the locks and put in new blinds. The house was ready to go otherwise. HOWEVER, when the first tenant moved in and was doing a deep clean, they found mold spots in the downspout of the ice maker in the refrigerator. I ended up replacing the entire refrigerator. I didn't realize exactly where the mold was. In hindsight, I should of questions the tenant and visited before panicking and replacing it.
Lessons learned? Challenges?
I recently listened to a bigger pockets podcast and the host recommended taking 20% off of the rental price suggested by the realtor. The price we ended up getting is about $200 lower per month, so I have a very narrow cash flow right now.