First deal First brrr

[Jay Smith]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $5,000
Cash invested: $55,000

It appraised at 91k and I got my money back.

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

It was my first deal and with the house only costing 5k I felt like I couldn't go wrong.

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

From a guy I met on the street. I think the city was going to tear it down.

How did you finance this deal?

cash

How did you add value to the deal?

It was a 2/1 we made it a 3/2.

What was the outcome?

I was able to refinance it and get back 3k over what I put in it. It only cash flows $50 a month because its a 15 year loan with a high interest rate.

Lessons learned? Challenges?

I learned I should've of started with the end in mind. The refinance was difficult without a w2.