Our first deal (single family home - buy and hold)

[Danny Taylor]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $15,000

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

Cashflow possibilities, breaking into the real estate investing opportunities, and learning new concepts

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

This was a HUD property on the MLS. We understood we could turn the property with very little capital expense and offered close to listing price.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

"Evicted" the cats living under the house. Replaced the ductwork that they had torn to pieces. Replaced all interior doors, painted and refinished the kitchen cabinets. Added a closet to the second bedroom and fixed some drywall/plaster issues. Installed gutters and cleaned up the landscaping. New fixtures in the bathroom and cleared some plumbing issues.

What was the outcome?

We were able to BRRRR this property within 6 months. Cashflows each month. Value went from $30,000 to $60,000.

Lessons learned? Challenges?

Basic project management and what it takes to turn a property. This was a great property to learn on as there were very minor problems to deal with. Contractors can be flaky. We burned through two contractors within a 2 month time period.