First House Was Successful

[Tony Hershiser]

This is going to be a long one....

I was working as an auto mechanic when I got my first sniff of what realestate could offer. The sales manager owned 37 single family home that he statement purchasing when he was 22 and he was 55 at the time I met him. He never really shared anything with me because 1 I never asked and 2 he knew I was only making 40k a year at the time. I stumbled onto the bigger pockets podcast and listened daily for about a year dreaming about being able to invest. Finally I knew my income needed to change so I shaved off my nearly 12inch beard and begged and pleaded for a job in sales that would afford me the income to invest.

Fast forward I worked in sales for a short time and then accepted a role as service manager for a local body shop and my income nearly doubled. About 9 months later a 4 bedroom 2 bath built in 1910 hit the market for 29k and I sprang into action and called a guy the I sang in the church choir with and asked him to meet me right away at the house he agreed and we looked at the house and I made an offer on 32k and it was accepted and with a small loan from my dad went to work on a 203k loan. My first contractor may have bitten off more that he could chew and ended up bailing on the job 1 week before close and we had to rush to find another contractor who charged up 30% of our 35k rehab loan to be the General on the job and my wife was still having to make to phone calls to arrange the work with the subs...

Contractor fee $6.5k

We removed the boiler system and added central air and heat. $12.5k

Hung new ceiling fans $350

Laid carpet in the first floor $2,300

Replaced the back deck. $4k

Replaced the front and rear entry doors. $6,500

Other misc that I have not accounted for here.

Overall investment was around 76k and we sold it for 115k and after the fees walked away with 35k in our bank account. No capital gains.

We now have the money to invest oh and 5 more kids

I know am the Finance director for the dealership and my income has increased over 5 times what I was making as a mechanic we and are working eith a local agent to purchase our first multi-family investment. It took a while but here we are and I look forward to learning more from this platform.

Thanks for reading and have a great day.

Remember I'm an ex-mechanic not a writer.

[Dmitriy Fomichenko]

@Tony Hershiser good luck with your REI journey!