My first Buy and Hold will be sold next month.

[Jeremy Johnson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $115,000
Cash invested: $20,000

Bought distressed buy and hold for rental. Many upgrades for long term use. 4 BR, 2.5 ba, 1900 sqft in a nice neighborhood. The numbers looked good and was very cash positive for the 2 years rented. Recently sold due to relocating as I depart the military. Very reluctant to sell but wanted to clean the slate for the LLC and restructure everything.

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

Was looking in the area when this came available and knew it had potential. Was following the BRRR strategy.

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

Was available on auction.com and had a very limited window. Since my father was willing to act as the hard money lender I bought it at the price I was prepared to pay.

How did you finance this deal?

Cash with loan from my father.

How did you add value to the deal?

Used BP's calculator and saw the potential.

What was the outcome?

Cash positive for 2 yrs and sold for a profit at the end of the 2yrs. Wanted to hold it, but not the smart long term play due to moving out of state. Sold for 189,900.

Lessons learned? Challenges?

I'll restructure the LLC in the future. Don't always take the first advice from a contractor, look for options on problems. Should have hurried the renovation more for another month of rent. Don't bend the rules for the renter. Stuck to my guns and got a very good tenant.

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

Exit realtor was very good. Warrant Realty in Portsmouth, VA.