First Pandemic-Investment Panning Out

[Natalie Medved]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $197,500
Cash invested: $100,000

5 bedroom, 3 bath "reverse salt box" located in the heart of the White Mountains in Thornton, New Hampshire.

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

What started out as an "accidental" BRRR transitioned into a buy and hold/ STR.

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

My husband and I purchased the property from family out of necessity before the market in the area went crazy as we couldn't work remote in our apartment in the city. We had an inspection done and and then negotiated the price down to $197,000 from $250,000 based on the fact we would allow my husband's step dad rent a room during ski season, the faulty roof, and other issues with the property. Was not thrilled about the deal and knew we were taking on a good deal of risk.

How did you finance this deal?

Cash deal.

How did you add value to the deal?

We fully renovated the home with a lot of sweat equity and tears. New roof, new well, new septic, full gut renovation on two of the three bathrooms, new kitchen (cabinets, appliances, fixtures, counters), new exterior doors, and solid oak floors throughout. We also increased curb appeal with landscaping (there was ZERO), a ledge-pack driveway, and a fire pit area. The house recently appraised for $550,000 and we received an unsolicited offer in the $600k range a few weeks back.

What was the outcome?

he house recently appraised for $550,000 and we received an unsolicited offer in the $600k range a few weeks back. We are going to to continue to hold and convert the property to a STR.

Lessons learned? Challenges?

Get everything in writing. Don't agree to pay contractors (even if they are your husband's hunting buddies hourly) and stick to the plan. We got SUPER lucky every step of the way but I knew it was luck saving us from the red.

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

N/a.