My first real estate purchase at 22

[Tj Troup]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $127,650
Cash invested: $5,000

This is my current residence that I am working on myself to create sweat equity. Not as fast of a process, but I was working with limited capital initially so an FHA on a cheap home was a good starting point for me. I am hoping to leverage this property to invest in some cash flowing properties in the near future.

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

Being that I work in residential construction full time, I have built up a passion for taking ugly things and broken things and making them something to her appreciated and admired. I knew if I could find a property for the right price, I could add equity fairly easily with my skill set.

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

I found this property super basically on Zillow. But this house was the lowest price in this neighborhood but a very solid house construction wise. I negotiated over one other interested buyer by offering full listing price if they would cover closing, because I was capped at the money I had access to put down on the house.

How did you finance this deal?

I financed with FHA loan, 3.5% down payment.

How did you add value to the deal?

I have done real hardwood throughout, painted, and am currently remodeling the master bedroom. I plan to then do the master bath, and finish the basement. The basement will add about 950 sqft plus another bedroom/bath.

Lessons learned? Challenges?

The biggest challenge with this house is doing all of the work myself, and investing my own cash into the rehab. Fortunately I save on labor because of my professsion. Recently we have ramped back up with the Reno because I have increased my income substantially in the past year.