Single-family residence buy & hold investment.
Purchase price: $140,000
Cash invested: $35,000
My first property started with a BRRRR in a great location. This fixer upper was untouched by the market - for good reason - but in an ideal area. I pulled 150 nails out of the master bedroom, their was animal feces on one wall, and too many holes in the walls and carpet to keep track of. After 2 months working on the foundation, new roofing, new floors, paint, new pulls throughout the house, and general maintenance, the property was finally rentable. My first lease was $1,500 for 12 months on a ~$680 note. I was netting $500 a month on this property as I self managed it. After graduating from school, I finished the refinance recently for $205,000 and a 2 pts lower interest rate. Needless to say, I learned as much from this as all of the books and podcast.
Lessons learned? Challenges?
The clear cut takeaway from this project was to fix or improve everything the first time around. I was short on cash early on, so I choose to wait to paint parts of the house, replace doors, tile, etc. The first-time owner headaches it would have saved me to just replace the damaged exterior doors with good, steel doors at the beginning are too many restless nights. As I have grown in this business, these little issues don't bother me anymore. We fix them, move on, but we always improve.
Congrats on your first successful deal. Now that you have one under your belt, hopefully the confidence is there to keep growing but with each new property, they all have their own challenges. I wish you the best moving forward in your investing!
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