Updated almost 6 years ago on .
My first Real Estate Investment. Buy and Hold SFH
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $74,900
Cash invested: $22,000
SFH Paid $74,900. $15k Down and a few thousand in closing, renovation. New floors throughout, new paint, new bathroom toilet, vanity and shower insert. Market Rent is $915. Renting to Family for $800/month
What made you interested in investing in this type of deal?
I was looking for something more rewarding than the stock market.
How did you find this deal and how did you negotiate it?
MLS through a realtor who is also an investor. We made an offer for asking price the same day it came to market. The owner was killed by a drunk driver a few months prior and the family put the home up for sale.
How did you finance this deal?
Conventional Loan 20% down, 30 year mortgage
How did you add value to the deal?
fresh paint throughout. New bathroom toilet, vanity, shower insert. Got rid of all the carpet and laid LVT throughout the first level. Got rid of the stinky carpet in the basement and painted the floor. New Fridge and painted the existing cabinets. New doors on the bedrooms. Updated the drainage, spouting, rain gutter system.
What was the outcome?
I am sure we've added value but this is a buy and hold. We are renting to family for now at under market rent.
Lessons learned? Challenges?
I only did a small amount of work myself but next time I wont do any of the work. I will also make more of an effort to get a better initial deal and pay less for the property.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Cindi Watkins in Pickaway county Ohio is also a REI and was great to work with. Originally I was working with PennyMac as my lender and found that they had not been forthcoming about the details of the loan and I had to expedite financing. I went with Wells Fargo and I am very happy with them.