Big School House

[Brienna Roberts]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000
Cash invested: $16,000

This is a 4700 sq ft home near a large wedding venue (Castle Farms), it is a 6/4.5 and sleeps 14 STR guests.

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

Its borders one of the largest Wedding Venues in Michigan. Also, when it was first available FSBO, it had shared lake access within a neighborhood. We were approached by a property owner who also had shared access to see if we wanted to buy it and remove the water access easement in exchange for a 100K discount on the property and a very reasonable private money loan.

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

It had been for sale for 3-4 months by owner in the winter/early spring. We offered at that point, but no go. They pulled it off the market but we re-approahed them later that spring because we knew they were living 300 miles away. Came to a deal. Had to hide the fact that neighbor was financing the deal because they didnt get along. It was a bit sticky. We had to keep our plans of STR a secret as well. No agents involved other than myself.

How did you finance this deal?

Private money loan. 4% interest with a 5 year balloon.

How did you add value to the deal?

We have painted the house, replaced all the windows and beautifully decorated, furnished. We converted the formal dining room into a bedroom so as a STR, it sleeps more and brings in more $ so more valuable to anyone who may want to purchase for the same reason down the road.

What was the outcome?

It rents for $1100/nt during the wedding season (May-October).

Lessons learned? Challenges?

hmm... hire a handy man. We're to the point now that we can't do it all ourselves. Roger is amazing:)