That is how real wealth is created.

[Ricky Hague]

Investment Info:

Single-family residence other investment in Nashville.

Purchase price: $270,000
Cash invested: $15,000

My wife and I purchased a home in a developing area and lived in the home for the first two years as the area appreciated. It is now a profitable rental for us.

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

My advice to all first time homebuyers is to pick a home that will eventually turn into a good rental. The layout of the home needs to make sense for multiple renter types. This home specifically is the perfect set up for two or three roommates to live together near downtown Nashville.

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

The home had sat on the market for about 70 days because development in the neighborhood had just begun. I was able to negotiate all kinds of closing concessions. One of which was having the seller pay $7,000 toward my closing costs.

How did you finance this deal?

5% down conventional loan.

How did you add value to the deal?

After the purchase I immediately built an 8 foot privacy fence closing in the backyard and extended the back deck to make space for a table and chairs in the backyard. Some fresh white paint on the walls and peppercorn on the kitchen cabinets had the home looking like a pinterest post.

What was the outcome?

We are still renting the home for a good profit. The home continues to appreciate as the area continues to be developed and Nashville continues to bring retail and activity to that area of town.

Lessons learned? Challenges?

I almost did not pull the trigger on a home when I did because of fear and the financials being tight. A lesson I learned would be to go for it. Scared money does not make money.