Bought my first property on contract

[David Prince]

I owned a previous property as a personal residence and completed the reno while living there and sold for a modest profit after relocating to Chicago. This past weekend I purchased my first investment property, a small bungalow on a quiet lake in Indiana, with a contract sale and pretty good terms. The property will need a gut rehab including roof, chimney removal, floorplan adjustments, plumbing, electrical etc. Its a big project but similar to my previous property so I feel cautiously confident. We close on June 1 so I am working through the project planning and queuing up contractors/supplies etc and selecting finishes. Hopefully this will be an 8 week reno once we get started weather permitting. 

I plan to keep this as a weekend getaway from the madness of Chicago city life but AirBnB when Im not there (already have approval from HOA). Once the reno is complete, Ill refi and deploy the equity to my next project.
 

Details: 

Purchase Price- $30,000 with 10% down, 8% interest, interest only payments for 24 months

Reno budget- $30,000 with some contingency for unexpected costs

Resale value- $85,000-90,000

Highlights- 2bd, 1bth, 3 lakefront lots, 100ft of lake frontage, small dock, new furnace and well pump/pressure