Townhouse buy & hold investment.
Purchase price: $30,000
Cash invested: $5,000
Sale price: $53,400
This is the first buy-and-hold property I purchased in 2018. The area is a C- area, but I was making $1,200 per month on rent. I decided to sell the property to another investor and reinvest the money in other houses.
What made you interested in investing in this type of deal?
It was my first buy and hold property.
How did you find this deal and how did you negotiate it?
The deal was presented to me by a realtor.
How did you finance this deal?
How did you add value to the deal?
The house was in good shape. The only thing I did was paint throughout the house, add new radiator covers, update the appliances, and add a new full-size washer and dryer.
What was the outcome?
The house rented out really fast! My first tenant in this house was subsidized, and I was receiving $1,200 per month. The tenant was responsible for all utilities. I sold the house even though it was generating lots of cash flow. The neighborhood was D- and the drive was too far from my house. I was self-managing all my rental properties, and I wanted to invest closer to my home.
Lessons learned? Challenges?
Don't procrastinate when you find a good deal! When I first started off, I wanted to capture the Infamous 2% rule, and I did with my first deal. I read lots of posts on BiggerPockets about the good and bad with 2% rule properties. I decide to pursue the 2% rule, and the experience I learned was well worth it!
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