Single Family Purchase Peak of Hot Market

[Andrew Galloway]

Investment Info:

Single-family residence buy & hold investment in Mountain Pass.

Purchase price: $460,000

Single family, purchased near peak market 2022

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

Had previously been avoiding real estate investment because I wanted the simplicity of passive income gains from stocks. I was also foolish and lost some money in crypto. Due to taxes, the up and down nature of stocks and also out of a desire to actually own something real and tangible, I decided to invest in real estate. This first property was an attempt by me to diversify my investments and begin real estate ownership. I also wanted to get in before rates went too far up.

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

I worked with a local agent and looked online. The agent found the property for me.

How did you finance this deal?

conventional 30 year and cash.

How did you add value to the deal?

Im not sure how much value I added to the deal, this was my first purchase.

What was the outcome?

I am very happy with the investment. I had tried to offer on another house with a similar price and the builder wouldn't negotiate at all. 2 years later, that house is worth far less and when I saw it in person it was not desirable. I got in before rates skyrocketed. The property I purchased is unique and they are not building properties with lot sizes and features like it in the area so it stands out. I think it will appreciate well. It has rented quite well.

Lessons learned? Challenges?

Overall this was an excellent deal, I learned more about this deal looking to buy another property the next year and also another year later. Seeing how the market has changed over the last 2 years has given me great incite. It was a great learning process. Property management was too expensive so I've been managing it myself with family assistance. The house to me has unique value and is a good buy and hold long-term. I beat a corporate cash offer by matching and adding $5k.

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

Galloway Real Estate, Sidney Galloway.
Synergy Mortgage, Clarissa Pride.