Cute little home w/ Sentimental value

[Terri Hoffort]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $135,000
Cash invested: $27,000

This little cutie belonged to a client of mine, I actually helped him buy it. Unfortunately he passed away at a young age and the family let me buy the home under market value. It was very important to me and was a bit of an emotional buy, but I know I can cash flow this home renting it out. We will fix it up a bit and find our renter in the next month or so.

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

Rental market is strong in Appleton. I've always loved this house and because it belonged to a client I was fond of and he passed away unexpectedly I felt a strong emotional tie to this one. The family let me buy the home under market value. I will rent it and fix it up a little and possible sell if one of my clients really need a home in this price range.

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

Because I keep in touch with my past clients the family found a letter I sent to the owner and called me to let me know he passed away and would I help them sell it. I gave them the option of selling on the market or letting me buy it. I let them know they would make more money selling it on the market but they also felt sentimental about letting my buy it because I cared for their brother. I asked for a 4% commission to help me put a little money into fixing it up after closing.

How did you finance this deal?

20% down, 10 year fixed arm 4.1% amortized over 20 years.

How did you add value to the deal?

Im in the process of figuring this out now.. so stay tuned!

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

I am a Realtor, worked the Dan Gast at Covantage