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Updated almost 3 years ago,
My first investment (2016)
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $175,000
Cash invested: $30,000
Great 100+ year old home in a small town near the beach. STR with ABNB & VRBO
What made you interested in investing in this type of deal?
The cost of homes at the time was very reasonable and I knew it would be a great STR.
How did you find this deal and how did you negotiate it?
Real Estate agent who sold my friend his home, helped me find the deal. They were asking $249K, then suddenly dropped to $199K. I offered $175 (my agent and friend told me that was insulting to the seller), but they accepted my offer.
We all found out later that the sellers had a huge balloon payment coming up and they were no longer a couple and jut wanted rid of the house.
How did you finance this deal?
HELOC on my main home.
How did you add value to the deal?
Renovated the bathroom, paint, new fixtures
Over the years I have replaced the HVAC and windows and added a shed and fence
What was the outcome?
It rents year round with the best months being April - Oct
The current value of the home is approx $350K
Lessons learned? Challenges?
It is imperative a good, reliable house cleaner and handyman, especially since I live 2 hours away.
Payment are made through Venmo to make paying them easy for both of us.