Investment Info:

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.