Investment Info:

Single-family residence buy & hold investment in Tucson.

Purchase price: $170,000

Cash invested: $46,500

3/2, 1318 SF, corner lot, move in ready in a great school district and sought out neighborhood. Vinyl tile throughout the whole house. Low maintenance backyard and front yard. Had to do minor fixes and currently rents for $1275 and cash flows about 100 per month after PITI, HOA, CAPEX, MX, and vacancy. Will be thinking about updating the kitchen in the next 5 years or when the appliances start going out.

What made you interested in investing in this type of deal?

I have always been interested in real estate but after reading Rich Dad, Poor Dad, I got even more interested. A coworker told me about the BRRRR and BiggerPockets so I started checking out rental properties. I wanted a move in ready house with no hassles for my first deal.

How did you find this deal and how did you negotiate it?

We found it on the MLS and we got it essentially for asking price. Since it was a family loan we were able to offer cash for it and the buyer worked with us instead of the other higher offers.

How did you finance this deal?

Family loan at 0 percent interest definitely helped this deal cash flow.

What was the outcome?

A friend PCS’d into town and moved in on his first day. We have a six month lease and we are self managing because it is our friend and we figured it gives a good way to get our feet wet with management.

Lessons learned? Challenges?

Plenty of challenges. We did all the fixes ourselves which were not major fixes, but it took some time. However, we learned a lot and were able to feel the value of hard work. Will most likely hire out other stuff for our next deal.

We also learned a lot about the landlord tenant laws in Arizona. Did a great deal of research prior to get a lease to our tenant.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, our realtor was Juan De La Ossa. He’s a great realtor and really knows the neighborhood. He was our realtor for the house we currently own and live in.