Our sixth investment: the 2nd Montesano house

[David Stone]

Investment Info:

Single-family residence buy & hold investment in Montesano.

Purchase price: $101,000
Cash invested: $25,000

Freshly updated inside and out! This spacious 4-bedroom craftsman features a large living and dining room, breakfast nook, stainless steel appliances, and plenty of built-ins. There is room for storage in the attached garage and plenty of privacy in the fully-fenced backyard with a concrete patio. Conveniently located between Simpson Elementary and Monte High, this makes for the perfect home!

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

The market was up from when we initially invested, but we knew this was still a deal. Less than a year later, it appraised for 200k!

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

We found the deal on the MLS. Someone bought it when it was listed 6 months prior for 50k (we had our cash tied up and weren't able to buy this property). They put on a new roof, installed a new furnace, new flooring, and remodeled the bathroom. Then their roof began leaking again and they wanted to sell.

How did you finance this deal?

We financed this deal with a 25% down conventional mortgage. The down payment came from a recent refinance of our first Montesano investment.

How did you add value to the deal?

We upgraded the electrical and brought it up to code, we moved the water heater and brought it up to code, we replaced rotten shingles and painted the inside and out, and we repaired the leaky roof.

What was the outcome?

We made the home safe and rent-ready and currently rent it for $1500 a month.

Lessons learned? Challenges?

This deal went surprisingly smooth!

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

We purchased the home through Premier Realty Oly Pen and used Academy Mortgage to finance.