Successful first deal!

[Ryan Kerrins]

Investment Info:

Condo buy & hold investment.

Purchase price: $80,000
Cash invested: $15,000
Sale price: $120,000

Great first deal. Bought a foreclosure in a great neighborhood. Lived in it for 4 years while renting out the basement to cover my mortgage. Sold for a profit and it was a seamless transaction. Ignited my real estate fire.

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

Seemed like a good idea! Got lucky really. Had a real estate agent that I trusted very much. Had no idea how to run the numbers but the purchase price made sense given that it was in a very desirable community.

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

Found it through a personal friend and real estate agent. No negotiating. Foreclosure price was 80K.

How did you finance this deal?

30 year fixed with 20% down from my brother to avoid PMI

How did you add value to the deal?

Renting the downstairs "unit" out. There was a private entrance, full bathroom, and two rooms down there. I rented it for enough to pay my mortgage. Great experience with the tenants.

Added granite countertops. Replaced Heat pump. Painted walls and fixed minor stuff.

What was the outcome?

Bought for 80K. Sold for 120K. Put approximately 15-20K into it. Made that much in rental income over the four years I lived there. I estimate I made 40K profit from the deal in total.

Lessons learned? Challenges?

It is scary to take that first leap but it has proven to be a motivator for me to learn more and get better. Selling a home is a pain!

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

Ben Robinson ReMax All-stars Kingsport, TN