Recent Investment Property

[Stephanie Wagner]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $462,500
Cash invested: $48,000

This is a single-family and a duplex on one parcel. The duplex is rented, and I am living in the single-family and doing repairs to also rent in the future. I originally intended to make this a short-term rental, but the rules and regulations in this area are very strict, so I am making it a long term rental.

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

I was most interested in this property for the location. Long term, I can see myself retiring in this area. It is very close to Geneva Lake, great shops and restaurants, and a lot of activity at any time of year.

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

I was looking at doing a fix and flip in the area, and I was driving around looking at comps. I couldn't find the listing on the mls as it was not under the address I was looking up. I called the listing agent to get more information and found out it was a duplex and a single-family home. The original list price was $599,000.00. They price dropped to $569,000 with no offers. We went under contract for $485,000.00, and after inspection, we closed for $462,500.00.

How did you finance this deal?

Conventional financing with owner occupancy.

How did you add value to the deal?

I was the agent in this transaction, and I acted as a principal representing myself. The sellers were all notified as such from the beginning that I was the buyer and the agent. I handled it the same way I would have represented my buyer clients. The listing agent was a very dear family friend, and honestly, this was a hugely emotional process for the sellers as they had just lost their mother, and they were selling their family home. I felt honored they chose me to buy it.

What was the outcome?

I gained the trust of the listing agent, the tenants, and the sellers that I was the right buyer for their family home. That I would take care of it just as their parents did.

Lessons learned? Challenges?

I learned a ton in this transaction, both as a buyer and as an agent. I was successful in getting the transaction to the closing table, but not without some hiccups. I had to switch lenders 23 days before I closed, and there was a medical lien on the property. The title company had a huge undertaking working with the state to satisfy the lien. The purchase also got flagged in appraisal as the property is unique to the area for having a 3 unit. Even with that, we still closed!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I worked with Tammy Haase from Compass Realty and Rob Lessner from CMG Bank. Tammy was kind and easy to work with. She had many showings of this property and worked her tail off to sell it. Rob is the man! He was able to get us a clear-to-close in 3 weeks, even with everything that happened. I highly recommend him.