My 1st investment strategy

[Steven Phras]

Investment Info:

Condo buy & hold investment.

Purchase price: $180,000
Cash invested: $3,000
Sale price: $270,000

For whatever reason this property doesn't show the real amount I sold it for. But i was collecting rent with a $600 per month revenue per month. This was my first investment property and sold the home for 1.5 times its value when i decided to sell. The property was sold as a For sale by owner to a cash buyer that allowed me to liquidate the funds right away.

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

It just kind of fell into my lap, I needed to buy a bigger property with a growing family and i decided to keep the home as it was really easy to rent out. Since I am a lender i understood the guidelines to where i can buy a primary home with less down as long as the reasons made sense to an underwriter. I always wanted to be a real estate investor as I knew others that did it, and it didn't seem as difficult as most others made it seem.

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

The home was listed on the market for a while and home prices were reasonable during those times.

How did you finance this deal?

Through the bank I employed with at that time. I am a mortgage lender by trade so financing it was never an issue. Its always good to get advice from someone with experience, and now I'm that person with the experience :).

How did you add value to the deal?

Just patience, home value appreciation, and being at the right place at the right time.

What was the outcome?

Sold the home for a higher price, obtained strong revenue for years, and wrote off a good amount in taxes

Lessons learned? Challenges?

Dealing with HOA's, City parameter's for renters, inspections, being readily available for repairs, dealing with renters. Its tough to be empathetic to a renters needs when you have needs of your own.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

In any situation i would just recommend myself due to the fact that im very successful in my career and also successful with real estate.