Initial investment property. Numero Uno! Right on the banks of the mighty Penobscot River in Orono, Maine (college town). Five bedrooms, 2.5 bath. Renting out "by the room" and just secured my first round of tenants.

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

The size of the property, the house itself. The location and proximity to the college campus (University of Maine).

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

Found it on the MLS and reached out to the realtor, who, coincidentally, sold me my first home and the house we live in today.

How did you finance this deal?

Private money lending. We saw it as a deal we couldn't pass us, so we secured $40,000 in private monies and used it for the down payment and initial repairs.

How did you add value to the deal?

Remodeled the entire interior. The property was sold as a 3 bed/1.5 bath. We added value through adding an additional full bath and converted "unlisted" rooms into actual bedrooms, but moving their entry into a newly created "hallway", adjacent to the existing hallway. The bathroom was incorporated as a part of that remodel.

What was the outcome?

Tenants moving in to fill the unit on 03/01/2023. One year lease was drafted and signed by all. The property (including private money repayment option) is $2000/month... but the profit margin on the property is ALSO $2000/month. This means $24,000 PROFIT, per year, is coming to us. The repayment will be expedited and the wealth generation on this one is enormous!

Lessons learned? Challenges?

We shouldn't have taken as big of a bite initially as we did. We purchased this property in September with hopes it would be ready for the students' January 2023 semester. We got LUCKY with these first tenants as "off-season" renters. Another two months without renters and we would have been forced to SELL. But construction should be completed in the next few days and ready for them to start moving in a few days ahead of schedule!

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

ERA Dawson was the realtor on the project. Specifically, Carol Brooks. Carol is great and she is local, so she was quite accessible when we wanted to see the property or look into things. I've done construction for about 20 years, so I waived the inspection in lieu of touring the property myself and inspecting the "bones". While I will admit I missed a few crucial details, overall, we fell into a GEM of a property!