Updated almost 7 years ago on . Most recent reply
First Home/Investment Property
Investment Info:
Single-family residence buy & hold investment in Ferndale.
Purchase price: $155,000
Cash invested: $7,000
Sale price: $204,000
Little Green House 2bd-1bath, on 8500 sqft. Multi Dwelling Lot.
What made you interested in investing in this type of deal?
Originally bought as First time Home, Felt it was to small to live in and thought I could Rent and Buy something Else.
How did you find this deal and how did you negotiate it?
Real estate Agents Partner Just Signed Huge Multi house Deal with a Landlord Looking to retire. She Showed us the place, and advised us to Go Super Low. Original List Price 189,900. Agreed on 155,000
How did you finance this deal?
Had signed up for 1st Time home buyers program that matched $2 to $1 up to 5k. used that for down payment and qualified for 3% down.
How did you add value to the deal?
I did nothing to add Value.
What was the outcome?
I sold Undermarket. Came out with 60K for new investment options.
Lessons learned? Challenges?
Under Market Rent, which caused me to skimp on Maintenance. Which devalued the Property, also rented to family so Subsidized rent on occasion, a lot of times under Mortgage rate so actual Loss in Money. Took 2nd Mortgage out at beginning to Pay outstanding CC Bills Ect, Justified paying because Tax deductions on Mortgage. Emotional Attachment and deferred Maintenance caused me to hold property too long, and not buy into others.