Single Family Turn Key to Keep Mother in Law at Bay

[Lacey Chandler]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $446,000
Cash invested: $50,000

This is a single family residence purchased to give my mother-in-law a safe place to live. It's in the best neighborhood in town. In order to break even on the property since she cant afford the going rent for the area, my business rents a room in the house as a remote office since we have customers in her area. It was a turn key property so she could move in and be comfortable. Stupid, but neccesary. She was in a dump in the ghetto before. She deserves better even if she is annoying.

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

I think the previous box describes this.

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

I found this on the MLS. I was watching for about 18 months. Once I saw prices dropping, and this property on the market over 30 days, (48), I made a low ball offer that they wouldnt respond to. I stayed quiet for a week to make them sweat and it worked. I offered again at 10K more, they countered, then I gave them a number they felt good about, but wanted the brand new state of the art appliances, and a bunch of furniture. So it was as if I got my first price.

How did you finance this deal?

Residential Mortgage Lender "traditional" 30 year fixed

How did you add value to the deal?

I kept my mother in law 3 hours away from me(priceless!) And I rented a room to my business to break even

What was the outcome?

Well it's been 3 months and I have already made back my down payment in equity, and she's super stoked, so it pays in pride

Lessons learned? Challenges?

Get more creative when it comes to realators, financing, and cash flow. Just because this was personal doesn't mean I had to loose money