Updated 2 months ago on .
Mid Term SFR
Investment Info:
Single-family residence buy & hold investment in Chataignier.
Purchase price: $670,000
Cash invested: $280,000
Purchased a SFH that was underpriced due to condition. Sweat equity, full remodel, complete backyard renovation and redesign of pool. Placed it in the mid-term market and plan on adding an ADU.
What made you interested in investing in this type of deal?
I initially purchased this property as my primary residence, with the plan to change to mid-term when we no longer needed the 5 rooms.
How did you find this deal and how did you negotiate it?
I found this deal on the MLS, and I wrote a letter to the owner. We were renting in the area and looking for a home to purchase. At the time multiple people were outbidding other buyers with over-asking price cash offers. A lot of foreign investors were purchasing without ever seeing or occupying the properties. We were renting in the neighborhood at the time, I work for the fire department and my kids were in sport at the local High School. The owners really liked us and took our offer.
How did you finance this deal?
I used my credit union and a conventional loan with 25% down to avoid PMI. I would have put less down had I KNOWN HOW MUCH I WAS GOING TO RENOVATE.
How did you add value to the deal?
I bought the property in bad shape, renovated most of it on my own, added a bathroom, and improved the backyard. I am now in th eprocess of adding an ADU.
What was the outcome?
Equity has soared, it has been in great demand as a mid-term rental.
Lessons learned? Challenges?
Living in the property while I was remodeling, and working my regular job was challenging for my wife and family. I would do my next rehab a little different.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I had a great local agent working with us.