Easing into investing

[Demetrius Ward]

Investment Info:

Single-family residence other investment.

Purchase price: $1,760,000

This is my first primary purchase with the intent to complete a live n flip or live n rent. Home values in the neighborhood are still creeping up. The residence is close to 200k in value as I'm typing this. The appreciation may slow in the coming months but the plan remains the same. My wife and I are renovating the place while we live here. We are both saving for the next investment and plan on using the future equity here at 1024 to assist with that if needed. This definitely isn't the fastest option it is slow and steady. Would love to seek opportunities to accelerate the growth of our portfolio.

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

Being teachers here in Oklahoma, my wife and I are not what you'd consider high-income individuals with a lot to work with but this is the route I could convince my wife to take on with our growing family.(Typical investor story trying to get the spouse on board). We're slowly making our way. Most likely going to use the equity built from this first purchase to accelerate our investing.

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

We searched for months during the time of historic low-interest rates. We were constantly outbid by others who were putting up all cash but we finally got this place thanks to our realtor who is now investing in real estate as well. (maybe a future partner). We offered a little over asking and the seller accepted our offer.

How did you finance this deal?

FHA 3.5% down and being a teacher I was able to get the closing cost covered with a special program for educators. All I paid was the down payment and some cost for inspections

How did you add value to the deal?

The home hadn't been updated in some time (Built in the 70's) First thing me and my wife did was get new flooring and paint. Currently, we are going to get the electrical updated and paint the exterior of the house we plan to update the kitchen and bathrooms as well. So not a serious rehab but something we can take our time with

What was the outcome?

To be determined, after many many podcasts and books (Thank you BiggerPockets) I feel confident that we will be able to exit successfully

Lessons learned? Challenges?

Staying patient, I really want to try all the different strategies I learn but I'm simply not in the position to do so. Maybe I could partner, but being a newbie I don't really know what I bring to the table

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

Our agent Alison Wanjon, She's great also our lender Robert Riggs at Gateway two awesome individuals that got my family and me on our way to financial independence!