Historic Fixer upper

[Ashley Powell]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $274,000
Cash invested: $50,000

Single family Historic home with an ADU

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

I wanted to find a home for me to personally buy that I could house hack.

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

I had been looking on zillow at local historic districts. this home had been on the market for over 90 days, which in this market was not right. I went and looked at the property and could tell why. The problems list was never-ending, but the owner had moved out of state already and wanted to sell the property so we negotiated from there.

How did you finance this deal?

VA home loan

How did you add value to the deal?

The apartment(ADU) on the back was being rented for $700, but actually had a squatter that hadn't been paid in months. After evicting the man I rehabbed and furnished the apartment and made it two separate living spaces with bedrooms and a shared bathroom and kitchen then rented the units out. The alone now pay the entire mortgage on the property as I renovated the main house.

Lessons learned? Challenges?

Budgets and timelines with historic homes (especially) are really hard to keep on track. I've decided moving forward when analyzing historic homes to add an 'oh poop' fund for all of the stuff that WILL come up.