First deal! No money down! (from 2010)

[Schuyler Witt]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $19,500
Cash invested: $48,000

This was a BRRRR! 2bd/1ba 804sqft house. Purchased for $19,500, rehabbed for $23,000, and all in for around $48,000.00 (with financing fees). I intended on this being flip but busted my rehab budget so I turned it into a rental. It's been a great rental and recently appraised for $95k! I did a cash out refi and bought two more deals. If you're reading this and new--YOU CAN DO IT! Be creative, be smart, buy right and then JUMP IN and figure the rest out!

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

A wholesaler brought me the deal.

How did you finance this deal?

With a personal unsecured loan and hard money.

How did you add value to the deal?

$23,000.00 to rehab.

Lessons learned? Challenges?

#1 Listen to my gut feelings and to my numbers. After about a week of working with my "mentor", I had done cash flow projections and knew that I was paying the contractor too much. My “mentor” said that we were okay, so I ignored my projections and gut. If you've done your homework--listen to your gut!

#2 Be more deliberate about the way I finance deals. I paid way too much in interest for this property.