The First House/Investment I Bought
Investment Info:
Single-family residence buy & hold investment in Palm Bay.
Purchase price: $175,000
Cash invested: $20,000
Sale price: $285,000
Single Family home that I was house hacking. I'm no longer living there and renting out the bedrooms. Currently, I pay all utilities unless Electric goes over $200 a month, then the tenants split the difference. I may change that in the near future but haven't figured out how Id like to sort it out yet.
Mostly cosmetic fixes besides the AC, ducts, insulation, Aerator for well water, garage door and a big back patio of pavers.
What made you interested in investing in this type of deal?
House Hack. It was a large size and had enough bedrooms. Also had the ability to AC the Sun Room.
How did you find this deal and how did you negotiate it?
zillow, I asked for $10k off purchase and agreed on $5k off with seller completing some minor repairs that the VA loan required.
How did you finance this deal?
VA Loan
How did you add value to the deal?
Updated quite a few things that were out of date such as the fixtures, garage door, added a large paver patio, insulated the attic and installed new duct work, new roof, added AC to the Sun Room(360sqft added to under air)
What was the outcome?
Made a large profit but I thank Covid for that large of an increase. Right place, Right time.
Lessons learned? Challenges?
Definitely learned about the type of tenants I can live with without losing my sanity. There were a few expensive problems that I didnt expect like a plumbing leak in the foundation. I shouldve gotten second or third quotes because I feel I over spent. ($2800). Some of the value add that I thought would increase the value did not increase the monetary value but it made it slightly easier to sell at the price.
