Home #4 but home build #2

[Ryan Nickolaus]

Investment Info:

Single-family residence buy & hold investment in Hudson.

Purchase price: $412,000
Cash invested: $80,000

I built this home this past year as an investment property. I took the profits from the last home I built/lived in for 2 years/sold and built this home. I bought the property while living in my last house, built a barn on the property adding value to it instead of paying for storage units for my things. Currently I am finishing the basement while living in it then when its all done I will sell it.

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

The market in Hudson WI was a large demand so I built a home that would sell fast and hold its value even if a market correction happened.

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

A church bought the property just before me but found out they couldn't build a church on it so they backed out. It was sitting for sale for awhile but not alot of properties were for sale at the time so I left work and jumped on it right away. Ended up being the owner of the property within the month and started the home build process.

How did you finance this deal?

Construction loan that converted into a 30 year fixed conventional loan.

How did you add value to the deal?

I built the home and did most of the work myself so I have sweat equity along with the profits from my previous homes.

What was the outcome?

Currently living in it and finishing the basement to eventually sell.

Lessons learned? Challenges?

It was a tough build with the shortages on materials and labor so the house took longer to build and was a pain dealing with the contractors that were hired for specific scopes.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I found the property myself but have amazing bankers/brokers that I worked with. If you want the contacts feel free to message me. They are only licensed in Minnesota and Wisconsin.