First Investment That I should Have Kept

[Daniel Soltero]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $220,000
Cash invested: $5,000
Sale price: $347,000

I bought a turnkey to occupy. Three years later I purchased my current home and turned the first house into a rental. I rented it for two years before selling.

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

I saw some friends and family gain wealth through real estate. I really didn't know anything about real estate except that I had a stable job and I qualified for a VA loan. This property had two garages and at the time I was a huge garage fan.

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

I was searching the internet and sent it to my long time friend and realtor to preview because I had been searching for about a year.

How did you finance this deal?

VA loan

How did you add value to the deal?

I didn't do much. Most of the work was the front landscaping. It had been flipped when I purchased the property. It was all appreciation.

What was the outcome?

I didn't fuss about RE commissions and I took all advice from my realtor and set the price to sell which lead to a bidding war. My net was $117k.

Lessons learned? Challenges?

Lessons. I should have just refinanced to fund my second home improvements. now that property is worth over $450k.

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

Yes. My realtor, Christian De Vera, helped me purchase 2 properties and sell 1. I recommended him to multiple friends and family members.