Updated almost 4 years ago on . Most recent reply
First Investment Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $43,500
Cash invested: $25,000
Sale price: $87,500
This was a 3/1 single family. I took out most of my 401k to be able to land this property. I bought it for 43.5k and put 25k into it. The property refinanced at 87.5k which will help pay off my rehab costs.
What made you interested in investing in this type of deal?
I wanted to get my foot in the door and this was an off-market deal I found out through a realtor in that area.
How did you finance this deal?
Went through a local bank where I put 20 percent down.
How did you add value to the deal?
Repainted the house, added gutters, glazed windows, replaced flooring, painted all the walls in the house, installed new lighting, outlets and switches in the house. I also repaired some plumbing issues that were found as well as replacing the electrical panel
Lessons learned? Challenges?
One lesson I learned was I need to make sure I stick to my budget no matter what. Going over your budget can have affects on how much money you come out with and may affect your finances for your next deal if you're not careful.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Worked with a realtor to buy the property and had a family member lend me the rehab costs.