First time is the funnest!

[Matthew Coghlan]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $55,000
Cash invested: $59,000
Sale price: $155,000

My first investment. I was 34 and a first time home buyer! I purchased this manufactured home on foreclosure. Lived in it for 3 years and sold it for $100k more then I bought it, with no capital gains tax paid! This home actually started my love for real estate investing. After seeing the gains I made from a home that only cost me $55k initially, I realized with my wife's help that this could become a lucrative way to build wealth!

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

I needed to find my own home and had limited funds to do so!

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

I used a real estate broker.

How did you finance this deal?

FHA first time home buyers loan,30 year amortization with minimal money down.

How did you add value to the deal?

We completely updated the interior, added a closet to the master bedroom and redid the roof, gutters and decks.

What was the outcome?

We made bank with no capital gains! But seriously, this was an immense learning lesson in rehabbing homes

Lessons learned? Challenges?

I learned how to be more meticulous with my subcontractors, vetting them better is a must! Also being organized and doing the research on materials will help to maximize profits!

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

Research your agent! Vet and interview them before deciding who you will work with!