New Construction SFR

[Mike Hege]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $240,000
Cash invested: $2,000

New Construction Property - we owned 9 years before building (purchased lot for $2K) and used lot equity to fund the new construction purchase through a commercial loan. Then BRRRR'd to pull out at 3.25% and buy another property.

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

Like the idea of brand new

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

Land that sat forever. Made a low offer and kept coming back to it. Plan was this was a 10 year play. We built in 9.

How did you finance this deal?

commercial loan

How did you add value to the deal?

Built from the ground up

What was the outcome?

We are partnering with a local housing agency that will be the master lessor and vet the tenant / check on the property that provides wrap around services but guarantees the market rate for 12 months.

Lessons learned? Challenges?

Building materials go up / Make sure to get the right tenant

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

I am an agent