Investment Info:

Townhouse buy & hold investment.

Purchase price: $58,000
Cash invested: $30,000

A coop townhome in the heart of the Bay Area about to go on sale for $190K. Must have at least $115K in cash, financing available up to $75K.

What made you interested in investing in this type of deal?

The asking price of course was super low for the SF Bay Area. While mortgages are not permitted, unsecuritized credit union loan covered the entire principal for 100% LTV. This coop holds exclusive lien position, so member-residents carry bankruptcy/foreclosure protection. Very low property taxes.

How did you find this deal and how did you negotiate it?

Friends in the area lived in the coop, I house sat a unit before buying one a few doors down.

How did you finance this deal?

100% LTV through the neighborhood credit union, which can do up to $75K. Because the coop does not permit liens, the credit union requires cosigner with real property in the US.

How did you add value to the deal?

Functioned as my own contractor to renovate the kitchen, bathroom and other features of the house. Took out tank heater in the kitchen and installed electric tankless.

What was the outcome?

About to go on the market

Lessons learned? Challenges?

I would have worked with a GC for the bathroom remodel, and looked to finance parts of the remodel. I invested about $800-1000 a month after an initial spend of $10,000 for an all-in of about $25,000, which took about 18 months. Later improvements added up to $30,000 all in.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Diane Schick is my realtor and sells many homes in Atchison Village Mutual Homes Corporation. You can learn more at