Updated about 4 years ago on . Most recent reply
My first real estate deal
Investment Info:
Single-family residence buy & hold investment in Orem.
Purchase price: $327,500
Cash invested: $20,000
This was my first house hack. I did a 3.5% FHA loan. Negotiated away the closing costs. I furnished it and then rented out the other bedrooms in the house to cover the mortgage. I did this for 1 year and then bought another house hack so when I moved out I put 1 family in the house. I used a property manager to find the family and manage the property.
What made you interested in investing in this type of deal?
I knew I could rent out the other rooms and live for free.
How did you find this deal and how did you negotiate it?
My sister is an Agent. I was her first client lol.
How did you finance this deal?
3.5% FHA loan.
How did you add value to the deal?
It had just been rehabbed so I bought it turnkey.
What was the outcome?
Super good. Learned a ton of lessons about managing. And I even cash flowed while living there.
Lessons learned? Challenges?
I should’ve done legit background checks and credit checks. I thought I could trust my gut on some guys but that didn’t end up working out well. I learned that I want a property manager to manage my real estate so I am not working in my business.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes.