Sold Buy and Hold Rental and Happy About It!

[Herbert Lewis]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $43,000
Cash invested: $50,000
Sale price: $180,000

I decided to sell one of my rental properties while the market was hot. I originally purchased this property with the attention to keep it as a long-term buy and hold. I made good money with it as a rental when I could get the tenants to pay. The last tenant I had an issue with, so I decided it was time to sell and reinvest the money.

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

I have mentor in the Baltimore region that has inspired me to be a buy-and-hold investor. Since then, my mentor has become a close advisor and private money lender in all my deals. Plus, in my opinion, wealth is built with buy and hold that cash flows!

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

I found this deal with a wholesaler purchasing tax lien properties at the time.

How did you finance this deal?

I originally purchased with hard money and then REFI out of the HM for conventional financing.

How did you add value to the deal?

I upgraded all appliances, countertops, and new paint, and refinished the originally hard wood floors.

What was the outcome?

The house turned out nice and made me a high profit. Plus, along the way, I made some money renting it out.

Lessons learned? Challenges?

Baltimore City is a tenant-friendly city. This was one of my first buy-and-hold properties. The lesson I learned was to better screen potential tenants and what the city rules are towards landlords.

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

I am my agent. Although I don't live and Maryland anymore, I still invest there and still have properties I manage from afar. The key is having systems and a solid team to help you resolve issues.