Updated over 6 years ago on . Most recent reply
First Long Distance Buy and Hold
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $35,000
Cash invested: $60,000
Purchased a property with our son in Butte, MT that had two dwellings on it. Completely rehabbed the front dwelling (2bd, 1ba Folk Victorian miner's cottage) top to bottom and added 1/2 bath. Our son house-hacked for three years while attending Montana Tech. Completed rehab on the back dwelling (1bd, 1ba Craftsman cottage that had not been lived in for 40 years). The Folk Victorian stays rented to students and young families. We are considering using the Craftsman cottage as a vacation rental since our son has graduated, but we still need a place to stay when we are in town to work on other investment properties.
What made you interested in investing in this type of deal?
An investment property for our son to live in while he attended Montana Tech and house-hacked with one other student.
How did you find this deal and how did you negotiate it?
Local realtor
How did you finance this deal?
Cash
How did you add value to the deal?
Completely renovated both dwellings while adding a half bath to front house.
Lessons learned? Challenges?
Rehabbing 100 year old homes takes a lot of time and effort. We did the work ourselves. Again, if you do not have the knowledge or energy to do your own rehabs, hire it out. It will be rent ready much faster.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Katey White with Berkshire-Hathaway continues to be our realtor.
Most Popular Reply
I didn't know that you were interested in looking at Butte. Tommy does wholesaling in Butte way more than Missoula. He had been tearing it up out there and selling everything as fast as he could contract it. My partner has a house out there that we had talked about selling, but are looking at just flipping it.
You should chat with Tommy and see if he has any good insight to offer.