First Property was a cabin on the other side of the country

[Lucas Milburn]

Investment Info:

Single-family residence buy & hold investment in South Lake Tahoe.

Purchase price: $114,000
Cash invested: $25,000

Cabin in South Lake Tahoe, second home turned vacation rental.

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

I was looking for a property in a ski area, had my heart set on Colorado but at the time couldn't find anything there and had been to Lake Tahoe in the past and was looking for something that was within 2 hours of a decent airport. I set my sights on Tahoe, at the time the property values were low, the area was struggling a bit, and I found this foreclosure.

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

I found this on Zillow. I had been looking around and had made one flight out to look at properties with a local agent. We toured some, put an offer in on one and didn't get it. A month or two later, another property came on the market, a foreclosure. After having met the Local Real Estate Agent previously and getting a gauge on their assessments of properties, had them walk the new listing for me, send me pics and videos and answer questions. We submitted an offer and was accepted.

How did you finance this deal?

Standard mortgage with 20% cash down.

How did you add value to the deal?

Keeping an eye on the market, saw the potential.

What was the outcome?

I initially had contractors do some work to the property (bathroom, flooring, plumbing) and then I handled the rest each time I was out there.

Lessons learned? Challenges?

Years after I purchased and have rented out local jurisdictions have cracked down on vacation rental and in this area moreso than most. You have to do your due diligence on areas where this is your intention.

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

Theresa and Don Souers, they are a great Real estate duo and great people. We keep in touch and try to meet up everytime we visit.