Marshall St House

[Justin Baney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $112,000
Cash invested: $22,000

Bought this 3-bedroom 1 bath house in a vacation town and moved into it. Lived in it for 2 years and bought a bigger house and have been renting for the last 10ish years.

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

I've always wanted to get into real estate. I bought my first home just before I finished college and lived in it for 3 years while renting out the 2 of the rooms. After marriage we sold the house for profit and moved to S. Korea.
2nd house I needed one to live in. Once we grew out of it, I didn't want to sell. I knew it would profit. The value of the house has tripled in 10 years.

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

I was watching the market for quite some time. We actually looked at the house a year prior to buying. The price went down and still it was on the market. It fit most of our criteria, so we offered low and got it.

How did you finance this deal?

We got a traditional loan from a local bank

How did you add value to the deal?

We brought 20% to the table.

What was the outcome?

We got an excellent interest rate and low payments. Worked out great. Since then, we have used the equity to fund a business I was a part of and have since paid that off.

Lessons learned? Challenges?

This one was very easy. However, I think I should have been on a trajectory of raising the rent. I think I was the cheapest rent around for a while. I'm not closer to where the market is.

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

I used an agent. I wouldn't recommend that specific agent.