Investment Info:
Single-family residence buy & hold investment in Covington.
Purchase price: $108,000
Cash invested: $9,000
This was my first home that I purchased. 3 bd/2ba. (1085 sq ft.) I currently live in this home and rent out the two other bedrooms to a family member and a close friend. I plan to continue to live here, making small renovations as I go, while also building equity into this home. After I had an appraisal conducted in September the home appraised for $140,000. I have acquired a $20,000 HELOC on this property. I plan to use that line of credit in order to purchase my first rental property.
What made you interested in investing in this type of deal?
I was ready to move out of my parents house, and I saw an opportunity on a price that I knew would build equity
How did you find this deal and how did you negotiate it?
I found this deal on the MLS. I negotiated the deal through a dual agent and got the price that made the most sense to me.
How did you finance this deal?
I financed this deal through a "Rural Development Loan" which was an opportunity for me as a first time home buyer, to have 0% money put down and fully financed through a local bank.
How did you add value to the deal?
I added value to the deal by doing some cosmetic work/renovations. Example: flooring, paint, electrical work, added culvert, backyard patio
What was the outcome?
Building a decent amount of equity will a little money out of my pocket in a short amount of time
Lessons learned? Challenges?
Lessons learned: sweat equity goes a long way, if you can do it yourself or you can outsource it to someone you know for a cheaper price. DO IT
Challenges: taking the time to get pre approved, taking time to find the right deal, sticking to your guns on the offer price!
