1st property: Foreclosure renovation turned rental

[Joseph Braund]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $48,000
Cash invested: $63,000

This was my first investment property purchase. I purchased it as a foreclosure and did all renovations myself. It's a 3br 1ba 900sqft home. Original strategy was to hold indefinitely, but have decided to list and use the cash to purchase 3-4 similar properties in a different market.

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

I wanted to start purchasing rental properties and had been saving cash for years.

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

I contacted the realtor who had helped me find my primary residence.

How did you finance this deal?

This was a foreclosure that I purchased with cash from savings.

How did you add value to the deal?

I completely renovated the bathroom, made significant repairs to all other rooms, and replaced half of the kitchen.

What was the outcome?

I built a ton of equity in the project and have had excellent cashflow in the years it has been rented.

Lessons learned? Challenges?

I spent entirely too much time doing all of the repairs myself.