New Construction Investment

[James Parker Tussey]

Investment Info:

Single-family residence other investment in Nicholasville.

Purchase price: $300,000
Cash invested: $250,000

New Construction home in proximity to Lexington, Kentucky. Looking to hold as my primary residence and sell in a few years. I have also been able to house-hack and have roommates to subsidize my mortgage!

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

Knowledge in new construction and the lack of inventory in my area.

How did you finance this deal?

Worked with a local bank to obtain a construction to permanent loan.

How did you add value to the deal?

I worked as a project manager and had good relations with local contractors to save money on build costs.

What was the outcome?

Currently living in the new construction! Will be living here until I can extract my equity.

[Mack Lengel]

Glad to hear you are cutting your living costs by house-hacking it.

I am a little confused about the purchase price and cash invested. Did you only get a 50k construction loan? Your equity is the 250k you put into it and you will pull that out after a 6-month seasoning period? What are your plans to reinvest the equity?

Looking forward to hearing about it