My first real estate buy and sell

[Rich Shah]

Investment Info:

Single-family residence buy & hold investment in North Bergen.

Purchase price: $225,000
Sale price: $385,000

I had purchased this single family home as a rental. After holding for couple years and the price increase I decided to sell the house before the market downturn. Being a licensed Financial Advisor I recognized the ridiculous home valuations and decided to sell the house.

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

I lived right across the street so to buy and invest in a house close by was a no brainer for me.

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

House was right across the street where I lived.

How did you finance this deal?

This was a cash purchase.

How did you add value to the deal?

I had done some rehab work in the home to get the highest rent possible.

What was the outcome?

Fortunately, all the stars aligned and I was able to hold for couple years and then sell at a pretty high value.

Lessons learned? Challenges?

Learning to manage tenants. I had a tenant who became a bit of a pain. Eventually she stopped paying rent. Rather than taking her to court I figured out an alternate way to deal with her. I wound up saving a ton of money and more importantly time. Fantastic first experience.

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

No. I found and sold the home on my own.