FHA townhome purchase turned LT rental
Investment Info:
Other buy & hold investment.
Purchase price: $133,000
Cash invested: $20,000
This was the very first property I purchased. It was back in 2011, and I used an FHA loan to acquire the property. I lived in the home with two other roommates (it is a 3/2 townhome) while I saved up to buy my next property. When I moved out and purchased the single family I now live in, I started renting the townhome for $2K/month.
What made you interested in investing in this type of deal?
I was ready to start saving money, so purchasing a townhome with $20K down and living for free (rent paid by roommates), allowed me to save a lot of money for my next purchase.
How did you find this deal and how did you negotiate it?
I did not have my RE license at the time, so I worked with a Realtor.
How did you finance this deal?
FHA
How did you add value to the deal?
I only had to put a little money into the home as it was a newer construction townhome.
What was the outcome?
I have been renting it to the same tenants for the past 4 years for over $2k/month.