First Buying/Selling experience for a loss

[Yash Bhatt]

Investment Info:

Single-family residence buy & hold investment in Phoenix.

Purchase price: $350,000
Cash invested: $20,000
Sale price: $340,000

This ended up being a really bad deal but was an amazing learning experience. I organized or did most of the work myself. This was a deal I did with a relative who wanted out so had no choice but to sell our rental. There were issues with the neighborhood and we ended up selling to a cash investor. Although we lost a lot of money, you have to start somewhere, and I feel the lessons I learned were invaluable.

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

Initially, I lived in the property then had to move. I didn't want to waste money renting.

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

Through a real estate agent.

How did you finance this deal?

20% Down 30 year loan through a bank

How did you add value to the deal?

Upgraded flooring, A/C units, kitchen, and bathrooms

What was the outcome?

Ended up selling to a cash investor for a loss.

Lessons learned? Challenges?

How to get the best bang for your buck when fixing things in the home. Learning how to let some things go and not spend too much money on upgrades that you won't get money back from. Also, accepting that some properties may lose you money, but the learning experience is invaluable.