First investment property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $27,000
Cash invested: $3,500
Purchased in 2015 and held until now. Decided to sell in current market. Closing 11/30 for 96,000
What made you interested in investing in this type of deal?
I was searching for a start to get out of rat race. Was interested in real estate after listening to another podcast, can't remember the name. Bought this property (my first) not really knowing what I was doing at the time.
How did you find this deal and how did you negotiate it?
MLS. It was kind of run down, but in a decent area. It was bank owned. I put in an offer, they countered, I accepted.
How did you finance this deal?
Investment loan from credit union with 20 percent down
How did you add value to the deal?
First I just did the essential; paint, essential repairs including plumbing, etc. Once I decided to sell I added laminate flooring, metal roof, new door knobs and other facelift items.
What was the outcome?
It cash flowed about $200 over 6 years so that is around $14,400. After selling next week it will profit about $65,000.
Lessons learned? Challenges?
Many lessons learned.
1) How to be a good landlord
2) How to fix many of your own items if needed
3) keep a good handyman's number handy
4) make contacts with handyman, HVAC guy, general contractor, plumber, painter and form relationships
5) you first investment will be daunting but push through it
6) buy more
The only true challenge this one presented (other than my own fear) was plumbing when I first purchased it
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not really. If you repair and facelift the house correctly it will sell/rent itself. I do use a remax agent and local credit union because I generally invest in houses under 50k and large banks won't touch them.
