The beginning and start-up property

[Eric Edling]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $360,000
Cash invested: $10,000

This was my first real estate purchase. I purchased the home with hard money and then refinanced it and upgraded it. I rent out 3 bedrooms in the home for 3500 and live there myself so it is my residence and does provide a small passive income.

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

First I loved the area where the property was because it’s upper class across the street from chambers bay where the US open was being held that year and the whole area was very up and coming.

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

I found this particular property through vestus

How did you finance this deal?

Are used eastside Funding for a hard money loan to purchase a home at auction and then refinanced.

How did you add value to the deal?

I’ve finished a portion of the garage and added heat so it was included as square footage in the home and instantly added another 250 ft.² to the house also upgraded all the kitchen and appliances. Also landscaped and redid the 1000 sqft composite back deck.

What was the outcome?

I still own the home and at its peak was worth nearly 1 million dollars and is currently worth around 800k

Lessons learned? Challenges?

Be patient and keep your nerves. Also do not trust that everyone knows how to do their job. My mortgage broker Almost messed up the whole purchase because he sent my deal into underwriting as a purchase not as a refinance it was very upsetting as a 24-year-old kid to have to tell had been doing their job longer than I’ve been alive how to do it.

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

I used eastside lending for the hard money and a mortgage broker other than that I did everything else personally and looking back I wish I would have had more people to talk to about this so it was no nerve racking.