First investment... a base hit

[Bradley Swett]

Investment Info:

Single-family residence other investment in El Mirage.

Purchase price: $202,626
Cash invested: $25,833

This was a short-term appreciation play and rent out in the meantime. It only cash flows about $200/month, but in exactly a year it's appreciated to around $245,000. I've got a tenant in for two years and will likely sell once lease is up.

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

It was my first and an agent I respected purchased the home two down. This was new construction and she was excited about the appreciation play.

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

My agent friend handled everything. I was almost too hands off. I've learned to be more hands on especially with basic design.

How did you finance this deal?

Traditional. 10% down b/c 20% wasn't worth the extra cash down for the strategy I chose to approach the investment with.

How did you add value to the deal?

Didn't.

What was the outcome?

Will sell more than likely once tenants out, unless market looks to shift, then would sell sooner.

Lessons learned? Challenges?

Be more hands on. I didn't know much about how to accurately evaluate the property.