Making $92,000 (Tax-Free) from One Real Estate Deal
Summary
This BiggerPockets article discusses a real estate investor's experience, starting with a $0 down deal and a live-in flip, highlighting both successes and challenges. Hosts can learn from the strategies for adding value and the pitfalls of managing a property during renovations, including tenant and contractor issues.
Key Insights
- •The investor turned a $0 down starter home into a $50,000 profit and then a $92,000 tax-free payday. This demonstrates the potential for profit in real estate, even with limited initial capital.
- •The investor used house hacking by renting a room and encountered challenges including the need to evict a roommate, providing insight into the realities of this strategy.
Action Items
- ✓Consider focusing on adding character-driven cosmetic upgrades and features, like a fire pit area, as these can significantly impact the property's appeal.Effort: lowImpact: medium
Tools & Resources
- →Base Lane: Base Lane, an all-in-one platform for automating rent collection, bookkeeping, and other tasks.(base lane.com/biggerpockets)
Common Mistakes
- ⚠The investor faced issues with non-paying tenants and the necessity of eviction, highlighting the risk of problems associated with house hacking.
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Curated by Learn STR by GoStudioM