My First Sale | Owned 2 Years | 36,295 Total Profit

First of all, I'd like to make clear that I'm a proponent of the buy & hold real estate tactic. However, I have recently decided to transition to a market that fits my long term objectives. The property I sold is in a college town. I turned it into a duplex, having a 3/1 upstairs and a studio downstairs. This allowed the unit to have substantially more cash flow. The numbers are below...

Purchase Price: 107,000

Down Payment: 4,968.94 (Using Cross-Collateralization)

Rehab & Holding Cost: 11,861.22

6 Months Before Renters took Place

Monthly Rent: 1,610

2023 Cash Flow: 6,268

2024 Cash Flow: 6,808

2024 Sales Price: 147,000 (37% Increase in 2 years)

(Due To Seller At Closing): 40,049

Total Cash Received: 53,125

Total Cash Invested: 16,830

I was able to produce a gain of roughly 36,295 over the span of 2 years, a 315% increase in the value of my original investment. I share this story as proof that REI still works TODAY!!! Go out, find great deals, write disrespectful offers, be creative and take risk. I believe it's more risky to sit on the sideline.

0 comments