My first primary, first rental, first sale

[Dana Johnson]

Investment Info:

Single-family residence fix & flip investment in New London.

Purchase price: $85,000
Cash invested: $15,000
Sale price: $160,000

Bought this as my primary. I moved out with my wife a couple years later and has been rental for 8 years. I've had a lot of ups and downs with this house but I recently sold it. Currently looking for next property.

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

I needed my own place at the time

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

Found it online with Zillow

How did you finance this deal?

FHA 3% down

How did you add value to the deal?

I was able to hold the property by renting it out until the market flipped again. Lots of patience and perseverance.

What was the outcome?

Blessed I was able to sale the property for almost double what I paid for it. I learned alot about being a landlord. As a landlord I was able to be a great landlord to the last family that lived there. They loved it some much they didn’t want to leave.

Lessons learned? Challenges?

Make sure contract is clear and abide by it always.
Be very careful renting to friends or family. They need to understand it’s business relationship.
Don’t let rent go late because it continues and you’ll be carrying your tenants.
Take the time to vet potential tenants. Use background checks and credit checks. Make sure to get a security deposit.
Preparing a house to sell don’t toss appliances. They are needed for government loans.
Paint and floors make a huge difference.

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

Real estate agent - Erin McNamara Remax on the bay, big help!! Got my house should before it went on the market and was so patient with me. Answer all my annoying questions :)