Single-family residence other investment.
Purchase price: $193,000
Cash invested: $13,000
Sale price: $214,000
Bought the home for personal use. Built with sweat equity a 2-story workshop in the backyard.
What made you interested in investing in this type of deal?
The wife and I wanted to move to a different city.
How did you find this deal and how did you negotiate it?
We located the property by searching online. We negotiated from $197,000 to $193,000 since it had been on the market for a year.
How did you finance this deal?
Traditional mortgage financing through a credit union.
How did you add value to the deal?
I build by hand a 2-story workshop in the backyard. It cost me roughly $13,000 to build it, which included power and plumbing. Ultimately, it added approximately $20,000 value to the property.
What was the outcome?
Outcome was great. Made a few dollars and sold the house in one week.
Lessons learned? Challenges?
It's not easy making money. If I had paid a contractor to build the workshop, it would have cost me money in the end.
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