Bremerton lakehouse rental and vacant land (still in development)

[Kristel Daugherty]

Investment Info:

Other buy & hold investment.

Purchase price: $402,000
Cash invested: $80,000

Purchased 2 lakefront lots - one developed with a SFR and the other vacant. Each lot is .5-.75 acres without HOA restrictions.

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

Excellent locations and purchased at about 50% of ARV. The combination of both adjacent lots was over 100' of waterfront and about 1.25 acres. Highly desirable as a rental with the potential to convert the vacant lot to additional STR units.

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

Off-market deal through a local wholesaler

How did you finance this deal?

Hard money with 20% down

How did you add value to the deal?

Still in progress!

What was the outcome?

We fell in love with the location and turned our downtown houses into a rental instead - and we now occupy the lakehouse. Oops!! HAHA

Lessons learned? Challenges?

Refi from hard money into long-term owner-occupied financing was super tricky. I would have negotiated longer terms upfront to get conventional financing upfront. The 20% down terms were the same and I think we could've still put together the deal because it allowed the tenant time to vacate (the terms of the contract was to allow the tenant up to 90 days to vacate, so extending closing for that would have potentially worked).