Maiden Voyage into the Real Estate Investment World

[Ollie Malone]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $65,000
Cash invested: $15,000

Updated family-owned townhouse to increase rentability and market appeal. Replaced all flooring, all appliances, garage door and garage door opener, selected window coverings, repainted the house throughout

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

Property was in a growing area of town, close to public transportation, shopping, and recreation. Public schools are of high quality and the property was undervalued compared to other properties in the area.

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

Property was owned by the family.

How did you finance this deal?

Personal finances.

How did you add value to the deal?

Operated as general contractor, interviewing every contractor who worked on the project, obtaining references, and being on site throughout the period of time that the work was done.

What was the outcome?

Significant improvement to all aspects of the property. Was a definite "wow" when the project was done, but was also done within the range of what would appeal to folks looking into this area.

Lessons learned? Challenges?

Chose the first renter of the property based on "the sympathy factor." The fellow turned out to be a disaster: passed numerous bad checks, did not make them good, finally had to go to court to have him removed from the property by court order. Was much more thorough in identifying the next renters who have been long-term tenants in the property.

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

No. At that time, my wife was a broker and I was a licensed agent in the State of Missouri.