How I paid off my 1st Investment Property In 1 Year

[Kendra Ellis]

Investment Info:

Mobile home buy & hold investment.

Purchase price: $8,000
Cash invested: $8,000

I bought this trailer on a 1-acre lot with the insurance check from my hail damaged car for $8,000. I drove my golf ball looking car for an additional 2 more years then sold the car to make an additional $3,000. The car cost $8,000 to buy initially because it was a 2008 dodge charger with a salvaged title.

I cleaned out the trailer and painted a few rooms then owner financed it for $50,000 with $3,000 down and they lived in it for 1 year before they stopped making the payments. So we foreclosed on them (cost $1,000 in fees) then added a deck and a new metal roof ( $3,000) then started renting it for $500 a month to a new tenant, she rented it for 2 years and then we evicted her, put new carpet and laminate in ($3,000) then found a new renter for $500 a month for 1 more year. Now we are considering selling the trailer for someone to come move it and then we build a duplex on the property that would bring in $750 a month per each unit.

Here are the numbers:
- $8,000 Purchase Price
+ $3,000 Down for OF
+ $7,000 In Mo. Payments
= Already paid it's self off in 1 year and made +$2,000 additional

Next Tenant:
+$2,000 Profit from previous tenant
-$3,000 in repairs
+$12,000 in rent before eviction
= +$11,000 profit

Next tenant:
+$11,000 profit
-$3,000 in repairs
+$6,000 in rent before eviction
= $14,000 profit after being paid off within the 1st year!

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

I didn't want to waste the money on a new car that would depreciate and not make me money so I decided to take the money and spend it on something that is going to make me money!

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

A family member knew of it and told me about it.

How did you finance this deal?

Using the money from my car's hail damaged check!

How did you add value to the deal?

Cleaning, paint, new roof, adding a deck & new flooring.

What was the outcome?

Great way to make money!

Lessons learned? Challenges?

screen your tenants... we never did.

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

No, not this time.

[Kendra Ellis]

@Tchaka Owen, it was so funny to see driving down the road and my friends would make fun of me.  But I was determined to be successful and I knew that I need to invest my money instead of blowing it like most 18 year olds would do.

It was those same friends who now have no career, do not own a home and are just working at a fast food place at the age of 26.

Vs.

Me making smart decision with financing, under standing the value in RE, starting to invest in RE at 18, getting my RE license at 20, being named one of the top 30 agents under the age of 30 in the world for Coldwell Banker, and working my butt off to paid off my house, flip about 5 houses a year and have 2 buy and holds properties.

*** I think I remember saying once to them, you laugh now but this is just the beginning... they especially laughed when I told them I bought a junky trailer.

I wish I would have known about BP back then, I would have love to see where I would be now if I could hear from @Brandon Turner, @David Greene, @Scott Trench & the lovely and frugally miss @Mindy Jensen at the age of 18 when I started all this.