First Real Estate Buy

[Jason Ray Richardson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $40,000

I purchased the home next to me out of foreclosure. It was my first investment property and what bit me with the investing bug. It was a 3 bedroom house that was laid out weirdly. I gutted it, fixed the flooring in what was the living room, replaced all of the windows. All in I was about 72,000. The house appraised for 124,000

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

It was the house next to mine so I wanted to make sure it was done nice.

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

I knew the former owner and found out that it was being auctioned off at the courthouse steps.

How did you finance this deal?

Bank Loan

How did you add value to the deal?

Totally remodeled. It was pretty much a diamond in the rough.

What was the outcome?

I rent the home out for 1,000 a month. I BRRR the property and used that money to buy my first mobile home park.

Lessons learned? Challenges?

The lessons I learned were on the deals after this one. This one was so good and fairly easy that I started thinking that they all would be that way.