Cash invested: $187,900
Sale price: $193,700
4 Bed 2 Bath 2450 SF Spec home on 1/4 acre:
I moved a home I acquired for free but during repairs realized there was significant structural issues that needed to be addressed. I couldn’t sell a subpar home so I did the repairs. This required almost the entire structure to be torn down which was a major expense I had not anticipated.
I built the house on the side, hence the year for construction but it sold before completed.
Lesson learned: Do a more thorough inspection. I knew better because I’ve done a lot of extensive renovation projects. My inspection was done during January in Wi and was on a - 20 degree day which caused me to rush. I will wait next time.
What made you interested in investing in this type of deal?
I had a history with spec homes and enjoy building them so when I was researching the area we were moving to and realized the housing stock was low and RE agents were suggesting new builds, I thought let’s build!
How did you find this deal and how did you negotiate it?
I was looking to do specs and Real Estate Solutions turned me on to the area and lot. It is right behind an excellent school with a great family friendly neighborhood
How did you finance this deal?
A local lender funded 57% and my folks funded 28%. I had sweat equity and 11% cash.
How did you add value to the deal?
Sweat equity was my main contribution and what saved me when the structural issues came up. If I had to pay a GC to do those repairs I would have lost money.
What was the outcome?
$5800 in profit and an education on moving homes!
Lessons learned? Challenges?
Don’t do inspection in bad weather. Don’t move a home unless it only needs interior updating.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Real Estate Solutions helped me acquire the property and sold it for me. They are well connected and promptly responsive with everything they do. They have an excellent team! In Barron County Wisconsin they are Rock Stars!
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