Single-family residence private money loan investment in Saint Peter.
Purchase price: $50,000
Cash invested: $15,000
Sale price: $95,000
Smaller single family home. Good location next to a park with a valid rental certificate in a college town. Paid cash, fixed it up, then sold on a CFD. I would have kept this as a rental, but I moved outside of my state's allowable distance to act as landlord.
What made you interested in investing in this type of deal?
I first started watching youtube videos about real estate strategy and was inspired to make something work. Most of what I do in life is self taught and I've appreciated that, because it humbles me and makes me extremely careful with decisions.
How did you find this deal and how did you negotiate it?
I found the deal browsing through listings and contacted a realtor who was also an investor. I offered what I thought would be fair, given the homes condition, location, and the urgency of the sellers need to move it. They accepted my offer and I got to work!
How did you finance this deal?
How did you add value to the deal?
New furnace, new flooring, built the front porch, repainted exterior/interior, cleaned up a ton of bad landscaping.
What was the outcome?
I held onto it for 2 years (I was busy with college, wife, and son) and slowly made repairs. I was interested by the idea of holding the note and found a family who was purchasing a home for the first time. They weren't able to use traditional financing (religious purposes), so I wanted to figure out a way for us both to be happy. They have made timely payments every month since 2017.
Lessons learned? Challenges?
Choose your pressure washer nozzle wisely! Ha! I blasted some wood off the siding my first attempt. I feel like I made good decisions on work that needed to be completed in order to make the house presentable, safe, and keep a tight budget. I'm also grateful that I purchased a home that didn't need major repairs or alterations. Overall, I'm glad I chose a less expensive home; it kept my risk lower and made the home more accessible to people based on median income for the area.
Great job! House looks great. Are you planning on doing more?
Great deal, congratulations!
Question- When you say you moved outside the state's allowable distance to act as a landlord, would you have been able to hire a property manager within your state to act as a landlord for you?
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