First home purchased

[Jeff Bosaw]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $30,000

Small 3 Bed 2 Bath Home in a nice part of South city. Now using as short term rental before selling or holding longer.

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

first home purchase and I liked the area. It was not ideal for long term rental so trying the short term rental approach.

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

Zillow. Minor negotiating was done with a realtor as the sewer lateral needed repairs and the market was a buyers market still.

How did you finance this deal?

Conventional 30yr loan with 20% down

How did you add value to the deal?

just appreciation and typical maintenance.

What was the outcome?

TBD hoping to sell for over $200,000 and receive $50,000 in appreciation over 7 years. I want to 1031 the sale into another multifamily or a rehab project to buy and hold for rental or short term rentals.

Lessons learned? Challenges?

I wish I had purchased a duplex from the get-go. I also wished I did not buy the nicest house on the block as the neighbors' homes are $30-50K less and makes it harder for new home buyers to see why my home is worth more.