Townhouse Buy & Hold

[Chris Hamrick]

Investment Info:

Single-family residence buy & hold investment in Atlanta.

Purchase price: $42,000
Cash invested: $2,100
Sale price: $102,000

Bought this townhouse for $42K in 2010. Changed the fixtures, appliances, custom faux painting throughout the home, accent walls, custom loft-style flooring on main. Total spent around $2,100. Appliances were bought as floor models and I sold the old units. Got a couple free that way.

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

Looked to be an easy deal.

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

On accident. Went to look at another property that went under contract while we were walking through it. This one popped up as we were literally standing in front of it and my agent saw it on MLS. Offered full asking after a quick 5 minute walkthrough. Just needed cosmetic work.

How did you finance this deal?

Private Equity

How did you add value to the deal?

Custom flooring, paint, updated fixtures and completed bathroom refreshes, proper staging.

What was the outcome?

Sold 6 hours after listing on MLS; first showing. I showed it myself. Sold it for 102K the highest in the neighborhood in years.

Lessons learned? Challenges?

Get my real estate license. My agent didn't do anything. I took the photos, I did the showing, I negotiated the price, I did the descriptions. Also get my appraiser license to vet deals better.

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

Yes, an agent.