Architect + Owner + Builder

[David Judge]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $650,000
Cash invested: $240,000

I bought raw land ($170K) and designed the home and managed the construction. The home is appraised at $1M. I live in the home and rent out a 700 SF portion of the home.

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

Wanted to avoid paying a GC markup, and owner/builder saved me $100K.

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

Found by driving for deals. Was not able to negotiate the deal lower. Real estate broker tried, but was unable to.

How did you finance this deal?

Purchased land with $120K down, $50K land loan.

How did you add value to the deal?

I brought equity by designing the plans and managing the build.

What was the outcome?

Overall, gained $260K in value (based on appraisal) while investing $220K

Lessons learned? Challenges?

I would not have added as much luxury finishes if I was not going to live in the home.

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

Katrina Eileen did a wonderful job (based out of Seattle, WA)