Another domino falls

[John R Kepler]

Investment Info:

Single-family residence other investment.

Purchase price: $68,500
Cash invested: $25,000
Sale price: $86,000

Large (for the period) contmporary ranch 1850sf 3/2 with attached 2 car garage. This was a house hack. The home was only 15 years old but had not been cared for. Cedar t-111 with no finish left, termites in the chimney chase, rotten fence, minor drywall repairs, over grown landscape, new condensor unit but the roof was still good. Sold when transferred to Japan. We did a $10k carryback at 12% for 7 years. Total take was $91,184 less repairs and purchase. I would put my net profit around $22k.

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

This was my second house hack. The first one was positive and this time I was more knowledgeable and had acquired more tools and skills. We needed a place to live and I wanted to stay active in realestate. House hacking was a way I could do both.

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

With the help of a husband and wife realty team that we still correspond with. They became great friends. They taught me even more about realestate.

How did you finance this deal?

Conventional

How did you add value to the deal?

I had everything done in about a year. It was a great home and we had great neighbors. A win all around.

What was the outcome?

Profit

Lessons learned? Challenges?

I learned that if you don't have an immediate need for cash, carry a 2nd is a way to sell high in a tough market. Rates were still high back then and my buyer had good earnings but weak (not bad) credit. He couldn't qualify for full price. I knew I was going to Japan for 3 years and Hawaii after that so I had no immediate need for the cash.