My First Real-Estate Investment
Investment Info:
Single-family residence buy & hold investment in Pottstown.
Purchase price: $56,000
Cash invested: $56,000
This is my first real-estate investment.
What made you interested in investing in this type of deal?
It was a good first deal......safe and simple. It did not require any rehab and was essentially rent-ready. It gave me the confidence I needed to begin pursuing more complicated deals via the BRRRR strategy.
How did you find this deal and how did you negotiate it?
It was purchased via a local wholesaler. The wholesaler had the deal under contract with the seller. I simply offered the wholesaler my highest and best price to meet my required return on investment....he accepted.
How did you finance this deal?
I was lucky enough to have some money from grandma. I funded the deal 100% with my own capital. I plan to refinance into a 30 year fixed rate mortgage.
How did you add value to the deal?
I did not add any value to the physical property other than correcting some code compliance issues.
What was the outcome?
I have contracted with a management company and the search has begun for a qualified tenant.
Lessons learned? Challenges?
I learned that I need to call the power company to transfer utilities into my name upon purchase so the power doesn't get shut off. It seems silly, but I completely forgot. As a result, the power and heat we're off for my rental inspection with the borough of Pottstown. Because of my error the inspection had to be rescheduled and was delayed by 3 weeks.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Chris McGeedy is a professional investor based on Elverson, Pennsylvania. He was the wholesaler on the deal. He is also a great resource.