how I started off with a starter home.

[Justin Larese]

Investment Info:

Single-family residence other investment in Chesapeake.

Purchase price: $75,000
Cash invested: $10,000
Sale price: $135,000

First home purchased 1k square foot 2 bed 1 bath single family. Lived in one room and rented out the other to cover mortgage for two years after fixing up. After two years I had an appraisal done and took out an equity loan to purchase a 2nd property in Mississippi that I moved into for $55,000. I rented out the first home for $1,000 a month which covered both mortgages. Lived in MS home for 2 years and sold for $68k.

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

Didn't see the value in throwing money away by paying rent. Saw the potential value in the property.

How did you finance this deal?

Personal money saved

How did you add value to the deal?

Updated kitchen, replaced flooring. Added gutters. Installed drainage to swampy backyard and added concrete back patio and privacy fence for appeal

What was the outcome?

Brought the property standard up and therefore set a higher standard for tenants. Built equity through appraisal. Living in property for two years of last five allowed to exempt capital gains.

Lessons learned? Challenges?

This property being my first really gave me the crash course for the process as a buyer, a live in landlord, out of town landlord, and eventually as the seller. Each new job title came with new challenges and filled the unknown for expenses, paperwork and taxes

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

For a lender I've used Navy Federal Credit Union. I have been able to run through an application online and through phone without needing to see anyone in person just as fast if I lived down the street from a branch. Checks deposited by taking a picture making no trips to the bank.

Agents: Amanda Hayden for north MS. Christy Perry for Hampton Roads VA. Chris Lock Springfield MO area.