First real estate purchase

[Dominic McCarl]

Investment Info:

Single-family residence buy & hold investment in Des Moines.

Purchase price: $84,500
Cash invested: $3,000

First house bought off market with $15,000 in equity.

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

Moved out of my parents house into an apartment lease for 13 months at the age of 19. After paying my first months rent had a sick feeling in my gut and told myself I’d buy a house after the lease. 14 months later I closed on my first house

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

Off market from a friend of a friend. It was a second house they owned in bad condition that was used to store miscellaneous stuff all throughout the house. I offered 84,500 for a easy process and to take a burden off his hands. He accepted

How did you finance this deal?

Through a credit union with a first time home buyers grant and a 5% down payment

How did you add value to the deal?

Completely redid the main bathroom on first floor. Added nice LVP found for cheap and in new condition off Facebook market place. Added a second full bath in the basement. Paint and updates here and there. Still many projects remain to increase value more.

What was the outcome?

Saw value rise significantly with a little renovation. Currently refinancing out house is now valued 155,000

Lessons learned? Challenges?

So many lessons learned