first purchase was a doozy of a deal

2 Replies

Investment Info:

Single-family residence buy & hold investment in Phoenix.

Purchase price: $140,000
Cash invested: $10,000
Sale price: $290,000

This was my first purchase and also my primary.

What made you interested in investing in this type of deal?

My mom had the foresight to understand that the market at the time was not going any lower and only upward. And also, I couldn't live with the 'rents forever.

How did you find this deal and how did you negotiate it?

We know the neighborhood and we were driving around looking for a home to purchase as my primary.

How did you finance this deal?

I bought it for cash. I thought I was smart and saving my self the stress of going through the mortgage rigmarole. If I knew then what I have learned over the years, I would have leveraged my cash and went with the mortgage leaving me plethora of money to finance a few more houses to rent out. Hind sight is always 20/20.

How did you add value to the deal?

I had the exterior painted to freshen up the curb appeal, updated the interior paint, closed one wall to make the office a full bedroom and updated the master bath.

What was the outcome?

I doubled my investment yet that was more of the economy than my doing.

Lessons learned? Challenges?

I know that I am no genius with real estate investing. It was all a matter of buying low and selling high. Not even timing the market. It was my primary for all those years. If I was smarter I would have done the BRRRR.

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