Updated about 4 years ago on .
first house that got me started in real estate
Investment Info:
Single-family residence buy & hold investment in Adelanto.
Purchase price: $110,000
Cash invested: $5,000
bought when I was 22 about 4 years ago. I put $10,000 down and asked seller for closing costs. My intention was to move in but that never happened. my mortgage was only $770 but I was only making $13 an hour at the time and the property was 50 minutes away from my job in ontario ca. I ended up staying at my moms house and rented it out for $1,100. I had no idea 4 years later the house would have a value of $270,000 and a rental value of $1650 (mid 2021).
What made you interested in investing in this type of deal?
At the time I was looking for the Best property I could afford. I was trying to move out of my moms house. all it needed was removal of trash and items in the house and a paint job.
How did you finance this deal?
conventional $10,000 down and asked for closing costs
How did you add value to the deal?
removing belongings of last occupant and repainting the interior.
What was the outcome?
a cashflow of $330 a month and a couple years later the opportunity to use it for a HELOC of $80,000.
Lessons learned? Challenges?
I should have bought more of these deals. I haven't raised rent since I first leased it for $1100. current market rent is $1650. I should have raised $50 or $100 every year. I haven't raised it in 4 years but when I do I don't think they'll complain because I'm going to do it in increments.