How I grew my money to 3X in 5.5 years and paid no taxes?

[Emran Chowdhury]

Investment Info:

Single-family residence other investment in Redmond.

Purchase price: $550,000
Cash invested: $145,000
Sale price: $915,000

This was a home run for a long term (5 years) buy & hold investment property (I specialize in this area).

- Initial investment of $145K (DP+closing)
- It had one tenant for 5 years and 3 months (no turnover), and the tenant paid off the mortgage and expenses in those 5 years.
- I spent around $30K to do upgrades before selling.
- Sold it for $915K after 5.5 years (received $442K at the closing)
- Did 1031 exchange and bought 8 SFH in NE & AL worth of 1.6M (brings $4k/months income now)

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

Solid SFH house in the appreciating location with 10% off from the initial listing price.

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

The house was on the market for a few weeks, I submitted my offer after the seller reduced the price to $24K. I offered another $25K less than that price. Overall I got an excellent deal of $49K off on the initial listing price.

How did you finance this deal?

A conventional mortgage with 20% down at 4.5% rate. During the pandemic I refi this one to a 2.99% rate.

How did you add value to the deal?

Replaced all the appliances with new ones and fresh paint before listing to the market