Purchased a Lake House Investment Property

4 Replies

I owned a previous property as a personal residence and completed the reno while living there and sold for a modest profit after relocating to Chicago. This past weekend I purchased my first investment property, a small bungalow on a quiet lake in Indiana, with a contract sale and pretty good terms. The property will need a gut rehab including roof, chimney removal, floorplan adjustments, plumbing, electrical etc. Its a big project but similar to my previous property so I feel cautiously confident. We close on June 1 so I am working through the project planning and queuing up contractors/supplies etc and selecting finishes. Hopefully this will be an 8 week reno once we get started weather permitting.

I plan to keep this as a weekend getaway from the madness of Chicago city life but AirBnB when Im not there (already have approval from HOA). Once the reno is complete, Ill refi and deploy the equity to my next project.

Details:

Purchase Price- $30,000 with 10% down, 8% interest, interest only payments for 24 months

Reno budget- $30,000 with some contingency for unexpected costs

Resale value- $85,000-90,000

Highlights- 2bd, 1bth, 3 lakefront lots, 100ft of lake frontage, small dock, new furnace and well pump/pressure

Congrats...been there done that. To be close to our happy hour friends on the Lake we picked up a 1bed, 1 small bath, 5x7 kitchen Lakehouse & totally gutted it, rebuilt & re-wired the entire inside but carefully maintained all the old 1inch pine & cedar planking. We took out the three 13"x13" single pane windows & now every room has a huge Pella window view of the lake. It's now 4 bedrooms, plus den, 2.5 baths, with an ensuite laundry room. We then converted the old useless insect/bird nest infested lakefront porch into a 23x12 kitchen with an 8x4 island. My wife & I did it all ourselves so it took a lot longer than 8 weeks you're anticipating !!!

Enjoy the experience !!!

Hey congrats. Your rehab of $30K seems super low based on everything you mention. Are you doing the work yourself without permits? What city is it in? I can give some guidance on working with the city if it's local to me.