My first Buy n Hold single family

[Carl Dieckmann]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $179,000
Cash invested: $40,000
Sale price: $230,000

This was my first rental unit, and a home my wife and I bought when we first got married. She used it as her residence for 1 year when I was in the military overseas and then we converted it to a rental. This is a great example of how a property when you hold onto it can be a little cash cow over the years.

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

I heard real estate investing was good, but new very little about it.

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

It was a new build in a tract neighborhood. My wife bought it without me even looking at it.

How did you finance this deal?

ARM loan. They were popular at them time.

How did you add value to the deal?

When I got out of the military, at about year 10 of owning it, we lived in it for a few months and renovated.

What was the outcome?

Sold and 1031'ed it into other projects

Lessons learned? Challenges?

1) I could get better cash flow on a different investment 2) I had one set of bad tenants on this project... it was hard to get $$ out of them 3) Out of state and overseas management is more challenging without a property management company.

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

Lisa Perry, from the Lisa Perry Group in Nashville helped us sell the place. She did great. Much appreciated!