Palatine Illinois house hack and Brrrr.

[Ronald Vik]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $90,000

I purchased this property as a primary residence. We lived through the complete overhaul of the property and refinanced the property post renovation. $420,000 Appraisal price with an 80% LTV. We are now moving on to the next property while at the same time renting this one out.

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

This is now the second home in this neighborhood we have done this process and it worked well in this area. (Great schools, great downtown area, train access to the city...)

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

This home was listed on the MLS and had been listed on and off for over a year.

How did you finance this deal?

Conventional primary residence loan.

How did you add value to the deal?

Complete exterior and interior remodel.

What was the outcome?

Added significant equity through forced appreciation and due to the high demand area the passive appreciation has been great!

Lessons learned? Challenges?

Vermiculite insulation was in the attic and had to be professionally removed due the possibility of asbestos. However there is a trust that has been set up to help those that wish to remediate. The trust will contribute up to 60% of the cost for the remediation and the replacement.

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

I am a local Realtor