Atlanta 1st deal > Long Term Buy and Hold

[Jonathan Small]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $109,000
Cash invested: $20,000
Sale price: $120,000

This was one of my first long term buy and holds I bought in Atlanta Ga.

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

I thought this was a good area to do a fix and flip to make quick cash.

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

I found this deal through a wholesaler.

How did you finance this deal?

I financed this deal with hard money.

How did you add value to the deal?

I added value by partitioning another bedroom. I took care or deferred maintenance. I painted the interior and exterior.

What was the outcome?

I was not able to flip the property as expected. I ended up renting the property on Section 8 program. I ended up having to short sale this property because I was over levered and didn't have a good exit plan.

Lessons learned? Challenges?

I learned to use professionals to minimize risk and improve quality of renovations. I tried to do a lot of the repairs myself to save money. I learned a lot but didn't do a quality job like a professional contractor would have. I learned I needed to have multiple exit strategies. I learned to do my own comps and not just listen to a wholesaler. I learned to buy in quality neighborhoods. This place had a lot of crime in the area.

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

no