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Updated over 5 years ago,
First property learning pains.
Investment Info:
Single-family residence buy & hold investment in Roselle.
Purchase price: $250,000
Cash invested: $14,000
Sale price: $265,000
This was a house I purchased to move into, long story and a divorce later it became a rental. Single family, 3 bedroom 1 batch.
How did you finance this deal?
FHA
How did you add value to the deal?
House was rented out and destroyed, I had it appraised and it came in at $180,000. After 10 years of owning the house had not appreciating, I was loosing money and was underwater so it was time to sell. My father was a part time investor and did a lot of work himself which I observed since age 9 so I am relatively handy. I targeted $13,000 in repairs but ran over by $848 this included some labor help, material and 2 60 yard dumpster rentals.
What was the outcome?
The house is under contract for $265,000, learned a lot of skill's details along with investment concepts especially how repairs can drastically bring value.
Lessons learned? Challenges?
First timers get an agent come in to give you ARV then learn how you can do that.
Know what your limits are or understand you will spend more time on a project.
Refinishing hardwood floors is not as hard as you would expect if you have the correct tools (get the sander, edger and buffer worth the time it will save you!) STAIRS on the other hand SUCK because of all the details are and the DEVIL LIVES IN THE DETAILS. Thank goodness for carpeting!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I went down the path of FSBO for 4 months with 5 emails from investors to show for it. During that time several agents came by but one stood out due to his personality and the fact he was going door to door instead of just a phone call. Pete Moriello at Advantage Reality was given the property to list on a Tuesday, he had a professional take pictures and video (on his dime) on a Friday, an open house Sunday and on Monday I had 3 offers at and above asking.
