First Investment Purchase

[Zane Cress]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $77,000
Cash invested: $5,000
Sale price: $99,000

My second purchase, first real investment only property. I inherited a tenant and was cash flowing $200/month. I got on the HOA board and started to help with decision making. During the year and half I owned this I decided I didn't like the area as much as I thought and the market had risen significantly. I sold to a cash buyer moving from California and did my first 1031 exchange with the profit from this property into two new properties.

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

The price point and cash flow was ideal and low risk for a first investment.

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

Used a local agent who I would do the next 4 deals with.

How did you finance this deal?

Conventional loan, 15% down.

How did you add value to the deal?

I did some minor work on the floors and plumbing but the market rose in the area and added most of the value.

What was the outcome?

Sold for nice profit and 1031'd into 2 new properties.

Lessons learned? Challenges?

Poor land development can lead to expensive drainage problems.

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

I used my go to lender to finance the deal. Got a great rate and a return customer discount.