My golden ticket to my next deal

[Austin Childers]

Investment Info:

Single-family residence buy & hold investment in Sandwich.

Purchase price: $100,000
Cash invested: $10,000

I bought the home at $100,000 in 2019. A friend of mine lived next to a motivated seller and said I should check it out. I made the offer that day without even realizing the potential. I invested $10,000, along with a lot of hard work, into rehabbing the property. When I refinanced, the home appraised for $130,000. The broker that I used on the refi was actually a youth pastor of mine when I was young and has been super helpful. As it turns out, he also owns a home inspection business. He was looking to grow and bring some new inspectors on board he actually offered me a job as a home inspector! I had been searching for something In the real estate space that I could do to raise capital, learn and network.. out of ne where this just fell into my lap. I'm going through the training now, writing a budget plan to save capital, and boosting my credit score. Even though I haven't sold or rented the home, this deal has laid the framework for my future in real estate. The experience I had just goes to show that at the end of the day, this is a relationship business more than a numbers business. Now its just time to sharpen my axe. looking forward to using my equity to buy my next deal with no money out of pocket!

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

Pure happenstance

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

I found the deal through a friend and I didn't even try and negotiate. I was so naïve. I didn't use an attorney, didn't put down earnest money, and I bought it as is. I wish I would have negotiated, could have got an even better deal.

How did you finance this deal?

3.5% down FHA loan

How did you add value to the deal?

I replaced the floors, painted, installed new trim, put a new enamel on the metal kitchen cabinets, installed two new windows, and replaced the furnace.

What was the outcome?

$32,000 in total equity to HELOC next year. A golden ticket to my next deal!

Lessons learned? Challenges?

Learned a lot about doing DIY rehabs. saved ALOT of money installing my own windows and I learned even more about what lenders look for.

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

The seller knew an agent and we just went with her to broker the deal.