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Updated almost 2 years ago, 01/30/2023

User Stats

8
Posts
1
Votes
Victor Herman
  • Investor
  • Lancaster
1
Votes |
8
Posts

Gold Nugget First Investment 2011

Victor Herman
  • Investor
  • Lancaster
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $6,000

4 bedroom 2 bath home. The very definition of lipstick and mascara. I replace the carpet and painted the walls. Rented immediately for $800.00

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

Opportunity for cash flow.

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

I looked at over 100 to find this one on the MLS. It was HUD owned. I only had $6,000 for a down payment that I pulled from my primary home. I offered $30,000. They declined and my agent asked if I wanted to bump my offer. I couldn't increase the offer I only had $6,000. Four hours later they called back and said they would take the offer.

How did you finance this deal?

FHA

How did you add value to the deal?

Carpet, paint, appliances, curb appeal of about $6,000 I put on the credit card.

What was the outcome?

I still own this home. I recently renovated the kitchen carpet appliances. I increased the the rent to $1,575.00 and pulled out $85,000 as a tax free loan and the property cashflows $400 per month.

Lessons learned? Challenges?

Grind it out and the money will show up.