Investment Info:

Single-family residence other investment.

Purchase price: $162,500

Cash invested: $8,000

Sale price: $272,500

I bought it at the bottom of the market, no money down with a VA Loan. I lived in it for two years and fixed it up. Then I rented it out for two years $1,500/mo. PITI was $975/mo. Then I sold it after owning it for four years for $272,500.

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

This was my first Real Estate investment. I had always wanted to invest, and when I got out of the Army the market was way down and I could use my VA Loan so this was a no brainer.

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

I used the MLS and was represented by a realtor.

How did you finance this deal?

VA Loan

How did you add value to the deal?

I put a new roof on it, cleaned it up and resurfaced the driveway. Thankfully, the appreciating market took care of the rest. Oh those were the days....

What was the outcome?

I rented it out for ~$6,000 worth of cash flow over two years, and then sold it for $110,000 more than I paid for it. Closing costs when I sold it were minimal because I am a Realtor and I sold it myself. I put about $8,000 into it fixing it up so I'd say I made ~$108,000 on the deal. Plus I didn't have to pay taxes on the profit because I lived in it two out of the last five years!

Lessons learned? Challenges?

This was my first investment, I learned a ton! I learned that buying at the bottom of the market can make up for a lot of lack of knowledge about investing. I also gained some experience with Landlording and fixing up a property to put it on the market.

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

Camille Wessling was my realtor when I bought, she did a great job!