First major investment

[Ethan Rafferty]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $290,000
Cash invested: $75,000

Bought a single family to live in and rent out the other three rooms to cover the mortgage. I paid slightly more than I should have and the renovation was more extensive then initially expected. However, the ARV is over what's been invested, so still managed to get a good bit of equity.

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

I found the deal on Zillow, and went about it with a traditional 3% conventional loan because it is my primary residence

How did you finance this deal?

3% conventional down for the house, and a private loan for the renovation.

How did you add value to the deal?

I own a contracting company, so I was able to complete the renovation for about $45,000 cheaper than if I had to hire out everything

Lessons learned? Challenges?

I definitely spent too much on it, and didn't pursue enough due diligence on the front end.