First investment project

[Robert Mahone]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $30,000

First deal, had to pay seller's back taxes so she would not lose the home before I could purchase it. Generated $3k in income by asking for back taxes plus additional $3k back in credit off the sale price.

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

Instant equity and cash flow

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

Real estate agent brought the deal to me

How did you finance this deal?

Personal loans for the purchase and credit cards for the repairs

How did you add value to the deal?

Renovated the home and put a tenant in to triple the appraised value.

What was the outcome?

Still renting and cash flowing

Lessons learned? Challenges?

Renovations take longer than expected, took 4 additional months to get tenant in the home