Sold primary and bought 2 homes. Universal City, TX

[Dustin Blackmon]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $117,000
Cash invested: $23,400

This home was purchased as an investment property while living in Colorado. We did not have to spend our proceeds from our first home sale on our primary because of a no money down FHA loan. We did have to put up 20 percent for this one. My wife was ready to move back to Texas and she started shopping. We found a foreclosure on /www.homepath.fanniemae.com

This home was rough, it needed a full electrical panel upgrade and rewire to make the home safe enough for my family to move into. The home needed some love. While living at this home we worked hard in our careers and saved money to afford upgrades like a new HVAC system, windows and flooring. Not to mention hours of interior labor to bring this old, neglected rental back to life. The property had a really back addition built into an existing patio slab that had to be demolished and made into covered patio.

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

This property was purchased with the intention of moving back to Texas and converting our primary home in Colorado into a cash flowing rental. After learning the power of owning real estate we knew this would be the way to continue generating wealth.

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

The realtor submitted full price offer but asked for closing costs and they accepted our offer. No repairs were negotiated during the contract.

How did you finance this deal?

We used a conventional loan with percent down. We sold our first home in San Antonio before moving to Colorado and used a 0 down program to buy our primary but as a 2nd home, we had to put down a 20 percent. Thankfully we did not touch our money we earned a year prior, and it was used to purchase this home.

How did you add value to the deal?

This home needed a ton of work. My wife just had a baby so this live in project was all me. I started by repainting the home and fixing drywall room by room. Then replaced the HVAC, windows and flooring. We also replaced the shower tub combo with new tile and tub. My wife loves to put up pretty tile, so she was a huge help on the bathroom project.

What was the outcome?

The home has been a reliable cash flowing rental. I have a great tenant and since we purchased the home 5 years ago, it has doubled in value.

Lessons learned? Challenges?

Buy a home, work on the home, buy another home, rent this home and repeat. Hard work pays off and the more you do it, the easier it becomes.

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

I am a Realtor with Fathom realty and help my clients build wealth through real estate.