Sold Starter home for great ROI

[Jason Holtzinger]

Investment Info:

Single-family residence buy & hold investment in Windsor.

Purchase price: $306,000
Cash invested: $14,000
Sale price: $625,000

I purchased this home as a foreclosure. It was not necessarily what I wanted for a first home nor was it in the area I really wanted to live. It was in good shape, had a great concrete tile roof and only needed minor repairs. My goal was to let it appreciate and sell it after about 5 years and move into a larger home in a different area with more property and purchase another investment property with the left over proceeds.

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

To get my foot in the door at a young age and wait for it to appreciate to one day sell it.

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

Through a real estate agent. We did not negotiate as it was bank owned and already a very good deal. We paid asking price.

How did you finance this deal?

I obtained an FHA loan and put down the minimum 3.5%

How did you add value to the deal?

Sweat Equity.

What was the outcome?

I was able to sell the home for an amazing return and the proceeds have allowed me to start looking for and planning for new investment properties.

Lessons learned? Challenges?

I learned A pool is more of a headache than it is worth. I learned there are more maintenance and repair items that come up than I realized there would be. It also showed me that it is not a difficult thing to purchase a property and almost anyone can do it.