All Forum Posts by: Anthony F.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Sale price: $105,000

I purchased the property as my primary residence with a one bedroom above garage apartment. I did LTR of the apartment until I moved in 2014. I then LTRed the property until 2022, renovated it and sold.

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

Rental property income to pay primary residence mortgage.

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

Drove by the property listed with real estate agent.

How did you finance this deal?

First time home buyer mortgage.

How did you add value to the deal?

Garage apartment on the property.

What was the outcome?

Moved out of the area and sold the property after renovations for a profit.

Lessons learned? Challenges?

Land lording, locating tenants, collecting rent, property depreciation. COVID made it impossible to evict tenants that refused to pay. Ended in 1 year without payment, eviction, property damage, insurance claim to cover the renovations and sold.

Hello @Matt Vohnoutka Thank you so much for the response! I do own a seasonal property close to this one and my retired father in law (retire contractor) is looking to do the renovation work for me and lives 1 mile away. I also have a plumber across the road that I allow to use my lake access in exchange for labor when needed. My retired mother has a cleaning service and lives close as well. My father in law has also agreed to plow snow and mow lawn at this property. It has three bedrooms and could easily get to the 8-10 sleeping space. It has a hot tub on the property as well but not sure of the condition and hasn't been used in years. It also has a garage loft with pool table. It is located close to the ATV/snowmobile trail head and has lake view. I considered using my 26' 16 person pontoon as a rental and I have 2 kayaks and 2 paddle boats. I did some VRBO searches and there are not many comps in the area. Most are small and outdated and only one other VRBO on this lake. The lake is in Northern MN and has a good walleye and northern pike fishing. I really like the potential for higher returns on the STR. My reno budget would be between 15-20k to get to where it needs to be. Looking to figure out the financing and legal structure. I've seen allot of social media about trusts and holding companies and I don't want to get too complicated but want to protect myself and family from legal issues that could arise......

Thanks again for your advice!

Tony   

Hello, I am new to real estate investing and I have a tentative verbal deal on a pre-market lake property that I would eventually like to make my retirement home (10 years or so). I am currently active duty military and looking for investment options for the property to create a passive income and build wealth. I am looking into longterm vs short term rental options as well as financing options. Property market value is 450-500k with an agreement of 300k. The property will need considerable work. I look forward to any and all advise! I am also a licensed electrician and very familiar with construction and project management.