Minor subdivision with a SFR.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $325,000
This was an interesting investment. It was 3.5 acres with a SFR that I purchased with my HELOC, so I had not money out of pocket. I then subdivided it into 6 lots and sold 5 of the lots. The sales price on the 5 lots was enough to payoff the entire loan. I now own the house free/clear and rent it back to my company for $1500/mo. on a NNN lease.
What made you interested in investing in this type of deal?
I wasn't looking for anything, when a Real Estate Agent friend came to me with this opportunity. I wasn't sure what to do with it at first but I new it was a good opportunity due to the location and the amount of land.
How did you find this deal and how did you negotiate it?
This was an off market deal that came through a Real Estate Agent friend of mine.
How did you finance this deal?
My HELCO
How did you add value to the deal?
I subdivided the land into small lots and sold them to a local builder.
What was the outcome?
I now own the SFR free/clear which I rent to my company for $1500 on a NNN lease.
Lessons learned? Challenges?
I learn a lot about subdividing property. It opened my mind to buying land and the creative things that can be done with it.