The Queen's Quarters

[Brienna Roberts]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000

This house was owned by our private money lender. He purchased it in 2018 because it had shared beach access to 'his' beach. He wanted that gone. He renovated this old, beautiful stone home. It's a 5/4, in a neighborhood that borders the property of the largest wedding venue in Northern Michigan (Castle Farms). The house was formerly the veterinarians house back when the Castle was actually a dairy farm. Original wood floors arched doorways, leaded glass, etc. Its beautiful. It was renting well as a STR but poorly managed. It came with the 3000 sq ft house and a 4 car detached garage with a 1/1 apartment above it.

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

We have become quite successful with short term rentals. The proximity to the wedding venue and charm/uniqueness of the house made it an easy decision to buy.

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

Our private money lender offered to sell this house to us since his motivation to own it (removing the shared water access easement) was gone. He offered a $0 money down, 4% interest loan with 5 year balloon.

How did you finance this deal?

Private money loan. 4% interest, 5 year balloon. Technically a land contract.

How did you add value to the deal?

Continuing to improve its appeal as a short term rental through better advertisement and marketing, updated furnishings, etc.

What was the outcome?

It rents for $900/nt during the wedding season (May-October). Grosses $75k annually