Another domino falls

[John R Kepler]

Investment Info:

Single-family residence other investment in Pensacola.

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, bad 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?

House hacking worked on my first house with a positive outcome. This time I was more knowedgeable and had acquired more skills and tools.

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

MLS and a very good realtor

How did you finance this deal?

Conventional

How did you add value to the deal?

I had all the defects repaired in a year and brought the landscape and lawn back a little more each year I was there. It was quite nice by sale date. Great curb appeal.

What was the outcome?

Profit

Lessons learned? Challenges?

I learned that if you don't have an immediate need for cash, holding a 2nd is a great way to sell high in a tough market. Rates were still in the high 9's and 10 at the time. It was a buyers market. My buyer had good earning but weak (not bad) credit rating. He just couldn't qual for the full amount.

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

A fantastic husband and wife team that we still keep in touch with. They taught me a lot.