Our first investment: the Elma house

[David Stone]

Investment Info:

Single-family residence buy & hold investment in Elma.

Purchase price: $34,900
Cash invested: $30,000

Right in the heart of Elma, this neighborhood home has been tastefully remodeled inside and out! The open floor plan features 4 bedrooms, an updated kitchen, and spacious living area. Enjoy the convenience of being walking distance to many of Elma's amenities or stay home and enjoy the large fenced back yard and covered front porch. Either way, you won't be disappointed!

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

We were living in an expensive (at the time) home and wanted to invest in real estate. My wife found a home at a reasonable price ($40k) in the town she grew up in and we decided to go for it!

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

We found this house on the MLS and obtained an unsecured loan from a bank for $35,000. We put in an offer for 34,900 and the bank who owned the property accepted!

How did you finance this deal?

Unsecured loan from a bank

How did you add value to the deal?

We put on a new roof, new siding, fixed rotting floors in the bathroom, renovated the kitchen, leveled portions of the home's post and pillar, added new carpet and paint throughout inside and out.

What was the outcome?

We made the place safe and rent-ready and it now rents for $1425 a month.

Lessons learned? Challenges?

We lived in the place for over a year before we figured out we could borrow off it's equity (we thought the purchase price was it's worth)! This was our real first investment. Check out my blog for more details on this rehab/hold project!

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

We purchased this property with the help of a real estate agent from Olympia, a friend of an acquaintance. Fortunately, shortly thereafter we began working with the best real estate firm in Grays Harbor: Premier Realty Olympic Peninsula, Inc.