First Investment property at 18!

[Logan Whitlow]

Investment Info:

Single-family residence buy & hold investment in Pittsburg.

Purchase price: $25,000
Cash invested: $25,000

This my first investment property and it was a major project. I replaced almost everything in the house and I did all the work myself. I bought this house when I was 18 years old. While renovating this house I was working 20 hours a week, taking 18 credit hours at my local community college and the house was 2 hours away from me. My total investment is $50,000 and it is now worth $110,000 and rents out for $1100 a month. This turned out amazingly and I am very happy with how it looks.

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

I was planning on going to college 2 hours away from where I lived. Instead of renting I decided to buy a house and renovate it. Then I would be able to house hack and have free housing.

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

MLS. The house was listed for $40,000 and I bought it for $25,000. I used a tactic I learned off of the podcast. I gave the seller two options one fix all problems with the house and I would purchase for $40,000, or I would take it as is for $25,000.

How did you finance this deal?

Saving up cash for reno and borrowing the purchase from family.

How did you add value to the deal?

Full renovation, and immediate equity for negotiaition