Investment Info:
Single-family residence buy & hold investment in Fort Myers.
Purchase price: $155,000
Cash invested: $155,000
3/2, 1600 sq ft. Great investment property that has appreciated a ton. I lived in it at first and did Airbnb. I have some of the best memories from this and generated more rent then doing a traditional one year lease.
What made you interested in investing in this type of deal?
I have always been drawn to real estate ever since I was young. I remember one-day playing poker (I was a rounder) that one person at the table told me more people have become millionaires through real estate than anything else. This made me want to get into the game so I started searching for a property. I was going to FGCU at the time and wanted a property nearby. This was an 8-minute drive away and was turn-key.
How did you find this deal and how did you negotiate it?
I found this deal through an agent. He showed me the property and I really liked it but wasn't quite ready to pull the trigger. Then the unthinkable happened... SOMEONE ELSE BOUGHT IT! OH NO!!!
However, the financing fell through. My agent was also the listing agent for this property. He called me up before putting it back on the market. They were asking 165k unfurnished. I offer 155k cash furnished and they agreed.
How did you finance this deal?
Cash. I was fortunate enough to have money saved up. I had been saving ever since 3rd grade, investing in stocks, small land flips and buying and selling things on eBay.
How did you add value to the deal?
Nothing needed to be done. The first year it stayed as it was. The second-year I had the whole house tiled. It was all carpet before. Yes, ALL CARPET, meaning even the bathrooms. I guess that was the style in the 80s. I found a handyman who would do it in a week for 1200 if I helped him with it. I said yes and learned a ton about tiling. The biggest thing I learned is, I WILL NEVER TILE A HOUSE MYSELF AGAIN! Titling is a hard job and every day I woke up with a sour back but I learned a ton!
What was the outcome?
The home is now worth around 230k. I may refi it and buy some other properties with the money. Right now it is just a cash-making machine that my kids may inherit one day. I am 26 now and have had this property since I was 20. It has helped a lot always having a steady cash flow come in.
Lessons learned? Challenges?
Real estate investing is a great idea. I learned that I do not know a lot about real estate and I was very lucky with this property turning out so well. I also learned that I will always be a student of real estate and that I need to learn a lot more as I continue investing.
