My First Lesson in Real Estate

[Sky Brown]

Investment Info:

Single-family residence other investment.

Purchase price: $1
Cash invested: $24,000

I built this property from the ground up completely by myself.
-3 bedroom, 1bath, bungalow no basement
-1100 square feet
Total cost = $24,000 and counting (small things to finish, maybe $3000 depending on quality of material)
currently rents for nothings (primary residence)
-Projected rental income $1000 tenant pays utilities

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

I was to young and inexperienced to get approved for a large enough mortgage in what I was initially looking for, and this was an option that seemed great.

How did you finance this deal?

Self financed with saved cash

Lessons learned? Challenges?

I had built this property on a ten year lease that is currently 1 year in as of jan 2020. This was extremely challenging for myself doing literally all the labor by myself. I see the value added by sweat equity and how much it can really save you if you are skilled and determined. I built this property for roughly $22 a square foot opposed to $100 or more if I were to hire it out, and the land owner gets a great deal out if this for just giving me a lease for free.