First investment property SOLD!

[Cullum Stirling]

Investment Info:

Single-family residence other investment in Nashville.

Purchase price: $225,000
Cash invested: $25,000
Sale price: $330,000

My first home, purchased as my first major investment. It was my primary residence. I rented out 1 bedroom and rehabbed proceeded to rehab the home over an extended period. I did everything myself with the intent to educate myself in what each an every job actually takes.

The lessons were priceless. I cashed out ~100k profit not to mention the additional equity I built in. The best part, I practically lived rent free over the extent of the project.

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

I was tired of forking out thousands of dollars a year in rent and with month in the bank I knew I needed to do something to make it work for me. With the goal to work for myself, a love for DIY projects, and reading about thousands of others gaining wealth and freedom through Real Estate Investing it was time to jump in myself.

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

The deal was found via the MLS. As a newbie, my negotiation was poor. In hindsight I should have set my foot down, stuck with my gut and what the numbers showed. In the end I payed market price for the property.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Completely renovated the home. Replaced all carpeting with high end flooring, fresh designer paint job (interior & exterior), updated all interior lighting, refinished kitchen cabinets, installed butcher top counters, added a custom "breakfast nook," replaced all windows, New HVAC & duct-work, cleaned up the overgrown yard and added exterior curb appeal, plus gutted & updated bathrooms.

What was the outcome?

A successful long term flip that I was proud to put my name on and sell to a new homeowner.

Lessons learned? Challenges?

The lessons are endless. Trust your gut, know your numbers and don't trust that your realtor understands the difference between an investment property and a general home purchase.

Haha challenges... what wasn't a challenge???

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

I purchased the home with a Realtor and sold the home myself as a new Realtor!