1st Investment Property Back In 1999

[Aaron Poling]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $28,000
Cash invested: $35,000
Sale price: $95,000

Renovated and used as a primary residence and rental unit before selling.

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

It was cheap and one of the only homes I could afford to buy!

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

Looking through a real estate book, was very common in 1999!

How did you finance this deal?

Local Bank Financing

How did you add value to the deal?

Home was in very poor condition when purchased. I needed to fix a structural issue, complete interior and exterior remodel.

What was the outcome?

Was able to use this as my first home after moving out of my parents house, lived in for several years and then leased out for profit. Sold it avoiding capital gains taxes by living in for 2 out of last 5 years of ownership.

Lessons learned? Challenges?

Look into property issues before purchasing, and don't jump on a property just because its cheap.

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

The seller was the real estate agent, and I didn't have representation. My father assisted me and he was an experienced home builder.