Lake House Gamble that paid off
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $160,000
House with lake access. Was a STR for the first 5 years and currently a LTR due to HOA rules
What made you interested in investing in this type of deal?
I was stunned at how cheap houses were around this lake and even though I was renting and working in Massachusetts, I thought I could buy a house and pay for it with rental income. I was watching a lot of "Vacation House for Free" at the time.
How did you find this deal and how did you negotiate it?
Real Estate agent. Was the only house I actually toured.
How did you finance this deal?
I financed under a primary residence loan as I was only renting a place at the time. I lived there on the weekends for 2 years while I renovated the place.
How did you add value to the deal?
The place was neglected. Needed just short of everything. I worked by butt off keeping it maintained for renters and slowly repaired plumbing, electrical, replaced all the appliances, and redid a bathroom. I painfully found contractors for the dangerous stuff, and put elbow grease on the rest.
What was the outcome?
Currently cash flowing about $1100 per month.
Lessons learned? Challenges?
I wish I bought a bigger place right on the water and not in an HOA now that I know it went so well. But I was being conservative as I was so new to the area and was not sure if anyone would rent.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No