Updated 2 days ago on . Most recent reply
The Dangerous Lady
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Manito.
Purchase price: $43,000
Cash invested: $100,000
Victorian home built around 1890. It was pretty well gutted when I purchased it. We turned it into a duplex with the first floor and 2/3 of the second floor as apartment 1, and the back 1/3 of the second floor, and the third floor are apartment 2. The bottom is a 4 bed 2.5 bath, and bth have their own driveways.
What made you interested in investing in this type of deal?
Desperation to get rid of the drugs and the homeless in the hoise across the street, to keep our five children safe.
How did you find this deal and how did you negotiate it?
My friend was the real estate agent and always used me as eyes on the property. After enough police tape I thr house, and meth labs discovered, the owner finally decided to sell. I lacked experience and let my emotions determine the purchase price which led me to overpaying.
How did you finance this deal?
Bank loan
How did you add value to the deal?
We worked on it for 9 years before getting thr top unit rented for $1,000 a month. The bottom is currently getting renovated and should be done in a month. I couldn't find a loan, so I have a home equity, three retirement loans, a 0% credit card, and 0% cabinets. I don't currently owe a mortgage on it, so I plan to open an LLC and cash out refinance to pay off my loans.
What was the outcome?
Still working on it, but I hope I'll have a $100,000 loan and renting for $3,000-$3,500 a month.
Lessons learned? Challenges?
Too many! Don't wait for a better time, it will never come. We lost our jobs, COVID, a new baby, college for a new career, bad code enforcer, and multiple surgeries led to a long road of renovations that cost me far more than it should have.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not really. Just learning as we go from podcasts. We tried different contractors over the years, but they were unreliable.