My first investment and now time for a 1031ex

[Dorothy Monette]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $239,000
Cash invested: $55,000

This was my residence and when I moved I kept it as a rental. The value is now around $380,000.00

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

Originally, this was my home.

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

I was staying with a friend and saw the sale sign go up. I wanted to buy in that neighborhood. This was during the recesssion and the property value had dropped considerably. I bought the property as a foreclosure, directly from the bank.

How did you finance this deal?

$55K down, and stated income. During the recession, lenders turned me down even though I had excellent credit. I was told, being a realtor, in the atmosphere of the recession, they couldn't trust my income. My friend, who was a lender got me the loan through stated income.

What was the outcome?

The real estate market recovered and the value is back to what it was prior to the recession.

Lessons learned? Challenges?

Save money and buy up during downturns in the market.

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

No, I negotiated it myself.