The Cottage on 7th

[Seth Haak]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $112,000
Cash invested: $60,000

The house was in pretty poor condition. We updated all plumbing/electrical/kitchen/bathroom and bedrooms. Its a pretty small house about 800sf but it really checked the box we were looking for as far as affordable housing.

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

This checked our box for affordable housing.

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

The seller inherited the property, he didn't want to deal with the idea of "tenants messing up his moms house" so he was motivated to sell and take the cash.

How did you finance this deal?

We financed with traditional financing.

How did you add value to the deal?

We remodeled the key parts of the home. We updated all plumbing/electrical/kitchen/bathroom and bedrooms

What was the outcome?

Solid cash flow

Lessons learned? Challenges?

Yes, we did way too many updates ourselves and should have hired things out to be more efficient.

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

Yes we have some awesome local lenders that we would be glad to share with people. Please reach out!