Buy & Hold in Dallas - $100k profit in 3.5 years

[Audrey L.]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $375,000
Cash invested: $3,000
Sale price: $475,000

I purchased a new townhouse from a builder who finished out a project that stopped in 2008. Half the units were dated and half were new. I house hacked, rented the rooms and lived for almost free for 3.5 years, then sold when the market increased. The townhouse was landlocked in a booming neighborhood near downtown.

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

Word of mouth from a real estate agent colleague who's brokerage was listing the property. I talked with them and purchased pre market.

How did you finance this deal?

Borrowed from my 401k

How did you add value to the deal?

Time appreciation and choosing the newest property in the neighborhood.

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

I am a real estate agent. I found a great partner to refinance in the middle of the hold when rates decreased and I pulled some cash out.