Updated almost 5 years ago on .
First SFR Buy and Hold Rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $142,000
Cash invested: $21,000
This was my first live-in house hack. I rented out the two guest rooms for $475 each. I initially got a 15-yr 10% down conv loan @ 3.875% (#DaveRamsey) until I realized the benefits of leverage. I originally purchased for 142k and it appraised for 156k. I put another 7k into the house (refinished hardwoods, new paint, updated kitchen, and guest bath). I got an appraisal in August of 2020 and it went for 156k after all of the upgrades... I then proceeded to get a second appraisal two months later and this time it came back at 177k. I then refinanced to a 30-yr 3.125% loan which effectively lowered my DP by $450/month! Talk about cash flow. All in all, this first property was a great learning experience for me.
What made you interested in investing in this type of deal?
BP podcast
How did you find this deal and how did you negotiate it?
My friend in town was an agent and this property just happened to be two doors down from him.
How did you finance this deal?
See desc.
How did you add value to the deal?
See desc.
What was the outcome?
Great cash-flowing rental
Lessons learned? Challenges?
Dealing with contractors and appraisers.