Buy and Hold Forever Home

[Jason Clemens]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $262,000
Cash invested: $120,000

Foreclosed home that the bank forgot to shut the water off in the dead of winter in MN. Rained in the house for 3 weeks. Listing also had the wrong sq ft. listed of only 50% of the square footage for the house. I knew from the second I saw the listing it was our forever home and we had to move fast. The house had sat empty for 2 years prior to us seeing it on the market. We had been talking of building for the past year or so, but this was the one and only "already built" home we looked at

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

It was such a steal. It was gutted completely down to the studs from the remediation company and we paid $262,000 for a 4,800 sq. ft. home that had sold for $949,000 2 years prior (fraud between the builders and buyers) but in a neighborhood in 2006 before the market crash that was a $750,000 neighborhood.

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

Found on the MLS from our realtor

How did you finance this deal?

At first with family Life Insurance money after my dad had passed away a few months prior. Then conventional mortgage after moving in and making it our primary residence.

How did you add value to the deal?

After re-wiring the house the way I wanted in the house and Re-Sheetrocking and trimming the house it's been our family home for the last 12 years and have upgraded and added so much more to it since including a huge wrap around deck across the back, screened in porch, hot tub, solar panels etc. Been a lot of hard sweat equity but worth every second of time and energy put into it.

The value of this house has tripled compared to our initial investment.