An ode to the last summer in my 20's

[Renae Bouchard]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $56,000
Cash invested: $10,000

Pre-foreclosure property redeemed before auction. This home featured a swiss cheese heating system and had been vacant for 5 years. With some sweat equity, donated professional expertise by my father the HVAC tech, and all my weekends the summer of 2023, I plan to pull almost $200k in equity from the house with a mortgage to continue investing and moving my investments further, and should still have about $100k left.

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

The equity and condition of the house. I budgeted close to 100k to fix up this property, but with skillful participation of my father and FOMO all summer, I put less than 10k into this deal. I plan to pull almost $200k in equity from the house with a mortgage to continue investing and moving my investments further, and should still have about $100k left. Not bad for a cash flowing asset.

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

The previous owning family received the pre-foreclosure redemption letter and auction date - reached out to me and they agreed to allow me to redeem it on their behalf and I am renting one side of the house at market value to a family member.

How did you finance this deal?

Private Money, personal funds.

How did you add value to the deal?

Blood, sweat and tears.

What was the outcome?

Hitting my FIRE goal, cash flowing asset, allowing me to feel free to family plan in the way that will allow me to be present for the future.

Lessons learned? Challenges?

Plumbing is NOT an underrated skill. Obviously. Learned a lot about how to find leaks in systems and fix burst pipes.