First time buy/rehab/hold

[Nick Crider]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $18,000

This is my first buy and hold property. Original asking price of 110,000, I purchased for 90,000. I don't consider it a home run deal, but it was the best deal in my area during the time I was looking. Because it is a buy and hold, I consider it a decent investment to start me out on my real estate journey. I plan to live in in while I renovate it, then pull out my original investment (and maybe a bit more) upon refinancing. Once I free up my investment capital, I will purchase my next buy and hold. Its a slow start but I am confident that I can succeed.

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

I have long wanted to hold rental properties as retirement assets and to supplement my income from my full time job. Life circumstances pushed me into stepping out into that direction right now...at possibly the top of a market...ooof. I knew I needed a property with meat on the bone if I was going to make a good start; even if the meat on the bone was a derivative of a bit of sweat equity.

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

I was selling my personal home. I wanted to use net from that sale to make another purchase. Being totally new to this, I enlisted the help of a local realtor. I told her to find me the property in my budget with the greatest potential for value add. She has been worth her fee twice over, and has helped me a lot.

How did you finance this deal?

Conventional mortgage from a neighborhood bank.

How did you add value to the deal?

I will be completely renovating the property myself. I have done his with my previous home to great success.

What was the outcome?

TBD

Lessons learned? Challenges?

Every step has been a lesson and I am enjoying it immensely.

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

Kathy Gallegos in the Springfield Missouri area.