Single-family residence buy & hold investment in Las Vegas.
Purchase price: $120,000
Cash invested: $10,000
I bought this home in 2012 with FHA loan 3.5 % down. Then had $80000 in equity year 2017. I did a cash out refill to buy another property in the Las Vegas area. I also rent out two rooms in my property and it covers my mortgage payment.
What made you interested in investing in this type of deal?
I was 21 years hold it took me six months to save $10000. I always had the ideal of buy real estate and making passive income.
How did you find this deal and how did you negotiate it?
I used a family realtor to help me find the deal and get the load.
How did you finance this deal?
I used FHA loan first time buyers. It took me 3 months to get the loan for the house because,I was only working part time in a casino. And was very young 21 years old.
How did you add value to the deal?
I replaced the a/c unit ,I repaired the whole inside of the house with my mom's help we did it are selves. I repaired the kitchen and upgraded the gas stove and out backsplash, I had the roof replaced and the landscape redid the front and back, remolding the master bathroom and guest bathroom. I installed a water softer , I painted the driveway floor. I had all the water pipes clean out .
What was the outcome?
It give my property value in the the past years $100000 that I used some of it to buy another property. And of course did not over leverage my self.
Lessons learned? Challenges?
The hardest thing was staying with the process it was my first property and had to look at 30 different homes to.finally figure out which one I wanted. Saving the money was very hard for a young man at 21 while all my friends were parting I was working three jobs and saving money. I learned to read more books and stay hungry and to never give up.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I did but those people are retired know.
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