Updated over 6 years ago on .
First property (SFH)!
Investment Info:
Single-family residence buy & hold investment in Severn.
Purchase price: $325,000
Cash invested: $1,000
4 bed, 2 full/2 half bath townhouse built in 2014. Currently leasing to a family and am in negative cash flow though I expect the area to hold strong through the next downturn if not appreciate significantly due to large influx of government jobs into the area (most of which are 6-figure salaries).
What made you interested in investing in this type of deal?
I needed to get my feet wet in REI and set my criteria based on a low-mid range, new SFH with previous owners (to ensure minimal surprise issues) in a family-friendly area. I mistakenly assumed I would be able to easily get the high rental price of $2400 monthly but didn't consider that I would be in the market starting in the late fall. At the time, I also did not know about the 1% rule.
How did you find this deal and how did you negotiate it?
RE agent with basic negotiation and benefits afforded a first-time homebuyer in Maryland.
How did you finance this deal?
VA loan, 30-year, 3.9% fixed, no money down.
Lessons learned? Challenges?
I'm glad I jumped on this because if I knew what I know now about metrics to consider for more educated REI, I would have fallen into analysis paralysis (at the time). Learned that I need to work with RE agents who have appreciation for REI.