First Investment - Single Family Home

[Lan Do]

Investment Info:

Single-family residence buy & hold investment in Colorado.

Purchase price: $315,000
Cash invested: $20,000

Bought the house for $315000 and spent $10000 to fix it up.

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

We found this house from our Realtor. Negotiation based on the house's cosmetic issues - smell, colored carpet and interior paint.

How did you finance this deal?

Conventional Loan with 3.5 % down

How did you add value to the deal?

Replaced whole house's carpet, refinished wood floor, repaint interior and exterior.

What was the outcome?

$600/month cashflow

Lessons learned? Challenges?

Looking for homes that have cosmetic issues and are priced lower than market value, and in good neighborhood for future growth. Buy and hold.