Single family residence. Buy and hold strategy.

[Robert A Donegan]

Investment Info:

Single-family residence buy & hold investment in Lemont.

Purchase price: $200,000
Cash invested: $200,000

Buy and hold strategy. This home was my first chapter in my real estate portfolio. I learned a lot in the rehabilitation process as well as the property management process.

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

I initially was convinced by my mom to purchase a single family home as a sound investment. It was shortly after the bubble burst in 2008 and I decided to look for something that needed work.

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

I used the services of a licensed real estate agent.

How did you finance this deal?

I financed the deal through a bank.

How did you add value to the deal?

I put a lot of work into it. I updated the kitchen with new tile, cabinets, countertops, appliances and did a wall cutout. I installed new fans in all of the bedrooms. I updated the basement by adding laminate flooring and built a bar and added some light fixtures. I painted throughout the interior and exterior and worked on the landscaping. Having a strong support group is essential when taking on these projects. I'm very thankful for my family.

What was the outcome?

So far so good. I have good tenants and they maintain the property well. Its good to stay vigilant but also to try to take things one day at a time. Overall, I'm pleased with this investment.

Lessons learned? Challenges?

Take small bites and take on one project at a time if you can. Patience is so necessary in this game.