Our First Investment. From Rental to Fix and Flip.

[Brenda Hamstead]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Sale price: $276,100

We purchased this property in 2003 and did some very minor renovations. It was consistently rented out over the past 15 years. Prior to selling it a few months ago we renovated with a new kitchen, flooring, paint and landscaping.

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

This was our first investment but something we had always wanted to do.

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

We just stumbled on it through a friend prior to his listing it.

How did you finance this deal?

Traditional conventional mortgage.

How did you add value to the deal?

Over the 15 years we replaced carpets, added a new roof, new HVAC. Prior to selling, we put in new kitchen cabinetry, new flooring, new landscaping and new paint - inside and out.

What was the outcome?

Multiple offers on day one of listing.

Lessons learned? Challenges?

Number one: This was our first go at being landlords. I probably would have prepared myself earlier on not to get to attached to the renters. Over 15 years we have definitely learned that lesson.
Number two: I would probably have listed it for more. There were only 3 other active properties available in that area in that same price range and ours was the most updated. We could have asked another $10 - $15k.

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

Yep! Myself. I have always loved real estate and have found two other investment properties that we are currently working on. I'm a real estate agent and work mainly in the communities and counties north of Atlanta.