My First Door!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $144,000
Cash invested: $40,000
New investor here! I bought this home to serve as my primary residence while I fix it up. I live with a roommate who covers the mortgage, so still net negative while I live here. The plan is to rent the home to college students in the area.
What made you interested in investing in this type of deal?
The potential for high cashflows and consistent occupancy. The university is expanding, businesses are coming in and there is a large hospital presence.
How did you find this deal and how did you negotiate it?
I found the home on Zillow, the price was lower than market so I did not do much negotiation. Seller knocked of 4k from the list price. It had sat for a few months and dropped 13k before that.
How did you finance this deal?
Conventional loan.
How did you add value to the deal?
I will be doing basic renovations and cosmetic work.
What was the outcome?
In progress!
Lessons learned? Challenges?
I have learned how to do basic plumbing, electrical, drywall, stairs, windows, and more! I have learned to overestimate the time and money for each project, and to plan very carefully ahead of time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I had an agent from Exit Realty. Nothing special to note.