How my starter home financed my current home.

[Jason Allen]

Investment Info:

Single-family residence buy & hold investment in Sharon.

Purchase price: $45,000

I bought the home to live in and did so until 2015 when I refinanced it for 68k to a down payment on the purchase and rehab a new house.

It was then the I started renting out my original home.

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

I had no money saved and an opportunity to purchase a house on land that had been in my wife’s family for more than 5 generations.

So using the equity in my current home was the only way I could get the loan for the new house. And after a large rehab I ended up with enough equity in it to refinance it an pay off all of the cost to rehab and then some with equity left in it as well so that I have no PMI to pay for either house.

How did you finance this deal?

Greenville Savings Bank a local small bank that keeps some loans in house allowing some more creative options.

How did you add value to the deal?

In the new house I had to do a Full gut and refinish in the basement, refinish and lay matching new hardwood throughout the entire house, as well a a full custom kitchen, and updated the bathroom as well.

What was the outcome?

Ended up with 2 homes and $ left over.