Bought a house for my mom 9 years ago!

[Ashley Undercuffler]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000
Cash invested: $40,000

I found a house that was clearly a fixer-upper. It had no flooring inside and bright lime green and orange walls from a teenage boy who used to live there without his parents.

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

I started here investing because my mother was renting an expensive apartment in a bad area of town. I figured it made sense for me to buy a home, charge her less money while gaining equity.

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

I found it through a friend of a friend.

How did you finance this deal?

This was traditional financing. A conventional 30 year loan with 5% down.

How did you add value to the deal?

I rehabbed the entire house.

What was the outcome?

Since I bought this property back in 2014, I have done a cash out refinance and used the equity to purchase more multi family homes in Indiana. BRRRR

Lessons learned? Challenges?

When I first showed my mother this property to live in, she freaked out and said no way! I told her just to imagine it pretty and she agreed. She lived happily there for eight years :)