First real estate purchase

[Greg Bates]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $145,000
Cash invested: $20,000
Sale price: $195,000

First home; used VA loan. Replaced floors and appliances, painted all the walls. Lived there for two years and sold when we left MN. Loved that house

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

Read Rich dad poor dad. The timing was right, the location was great and the price was perfect

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

Met my friend for golf and saw a for sale sign in the yard next to his. It was a short sale. Offered list with 5k seller contribution toward closing costs

How did you finance this deal?

VA home loan. 30- yr fixed, 4.25% interest

How did you add value to the deal?

Painted all the walls, replaced all the floors, replaced appliances

What was the outcome?

Sold 2 years later for $40k gross profit

Lessons learned? Challenges?

Circuit breakers don’t always make sense.