Raytown, Mo

I learned a million things with this investment.

‍#1 Thing I learned is that I never want to be a landlord. Ive read multiple articles and blogs on being a landlord and thought I was ready. I was wrong. I was eager to get a tenant in the home and start collecting rent assuming that every and any tenant would just never need anything from their landlord and just pay em on time. That is false. Although I received my rent every month, some months rents were late, some months I waived the late fee, and twice I had to give an eviction notice. My tenant was a single parent with three kids….I hated having to go through with that especially since I’ve been evicted before and it is no fun at all. On top of that my brother and I was raised by single mom. I am not built to be a landlord, and that’s okay! It is a learning process. Every rental investment here on out I will hire a property manager and just add that to the numbers.I have many other lessons I learned but cant fit in this post but the other lesson I’ll share is budget for the unexpected! If I would have done so, or even kept more cash reserves I would have never had reduce my rent. Initial rent was $1300 while my mortgage was $550ish but I had to reduce it to $1000, because I couldn’t afford a big issue that happened with the house.

Now to the numbers….

Purchase : $80,000

Rehab: $40,000

Appraisal: $150,000

Sell Price: $125,000 (Cash)

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Many of you are probably wondering why I sold the house for less than what it was worth.

#1 reason is because I am under contract for a deal that is bigger and better and I needed cash for a DP asap. Also I am shifting my energy and focus on Multi-families (Duplexes, Fourplexes, Apartments, etc) I believe this shift of focus will get me to my goals at a faster pace. If I were to wait 4 more months I could have sold it for at least $150,000 because my job would have bought the home and paid for all fees associated as a part of my relocation package. But it’s the bigger picture! At the end of the day I believe the experience I gained from this deal was a big win for me and what my future beholds.