New construction home as 2nd investment.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $152,000
Cash invested: $152,000
My second investment: a new construction home that I went into contract January of 2021
What made you interested in investing in this type of deal?
Price point was great and loved that it would be new and nice. Turn key.
How did you find this deal and how did you negotiate it?
My partner found it online. Visited the model homes, picked a lot out and made a deposit of about $5,000.
What was the outcome?
Closed the end of June. Renters in July 1st. At that point prices were up to 159k. I was very happy. 5 weeks later the same model is selling for 186k.
Lessons learned? Challenges?
Wish I had bought four of them instead of doing all cash on one. Slowly learning the power of leverage, but incredibly hard since I follow Dave Ramsey and love being debt free. But if I had put 38k on four different ones my appreciation gain would be 136k right now. Wow!! Working to move from scarcity mind set to abundance.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No
