Building Two is better than one

[Thomas Magill]

Investment Info:

Single-family residence other investment.

Purchase price: $10,000
Cash invested: $310,000
Sale price: $474900

These are two separate single family houses next to each other

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

The new build homes in this area have great rental and resale numbers.

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

This deal came from a fellow investor. This deal was apart of a four parcel land purchase that we subdivided into 7 deals including a duplex.

How did you finance this deal?

I self funded the purchase of the land and received construction financing from Lima One (a bank).

How did you add value to the deal?

First I had to get a variance to subdivide the land because it did not meet the as of right requirements to subdivide. Luckily there was an old drain pipe that bisected the site, so we used that as a means to get the variance. Once the site was subdivided into two different parcels, we built a home on each parcel.

What was the outcome?

Originally, we were going to hold the properties as rentals but once the interest started to rise we had a change of heart and decided to sell.

Lessons learned? Challenges?

Stick to your budget, don't feel rushed by contractors, they can all be replaced.