First investment at the age of 19!

[Logan Whitlow]

Investment Info:

Single-family residence buy & hold investment in Pittsburg.

Purchase price: $25,000
Cash invested: $25,000

This my first investment property and it was a major project. I replaced almost everything in the house and I did all the work myself. I bought this house when I was 19 years old. While renovating this house I was working 20 hours a week, taking 18 credit hours at my local community college and the house was 2 hours away from me. My total investment is $50,000 and it is now worth $110,000 and rents out for 900 a month. The turned out amazingly and I am very happy with how it looks.

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

I was looking to buy a house where I was planning to go to college. This way I could live in one room and rent the other 2 out.

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

I found this off the MLS for $45,000 and I negotiated them down to $25,000. The house was in bad shape so I used that to my advantage when negotiating. I used the technique of giving the sellers two options, one was they give me the $20,000 off and I do the work, or two they fix the roof and HVAC and I'll pay asking.

How did you finance this deal?

I saved $20,000 and got a family member tow give me a loan for the rest.

How did you add value to the deal?

It was a full house renovation.

What was the outcome?

I built $60,000 in equity and a property that cash flows $400 a month on a $20,000 cash investment. My cash on cash return on investment is 24%.

Lessons learned? Challenges?

I learned how to do HVAC, roofing, pluming, tile laying, laminate flooring, concrete counter-tops, drywall, texturing walls and ceiling, fixing foundations, trim, electrical, framing, and so much about the process of buying a property.