Single Family Home in Wheatridge, CO

[Grant Tallmadge]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000
Cash invested: $75,000

We bought this home as our primary residence in Dec. 2016. We are doing a small live in flip to stay long term with kids, or rent/ possibly sell after the 2 year mark.

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

Great up and coming area just west of the Highlands.

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

We went up against a cash buyer but wrote a letter to the original owner letting them know we would not just be buying the house as a flip but long term hold. The letter we wrote sealed the deal. Found the deal on the MLS but had very specific search criteria and viewed the property the day after it came on market and made immediate offer.

How did you finance this deal?

Conventional 30 year @ 3.625% with 20% down to avoid PMI through local credit union.

How did you add value to the deal?

Lots of sweat equity over time! Also hired out for new electrical and plumbing. New landscaping/upgrades and exterior has all new roof/gutters, 3 windows and new paint.

What was the outcome?

Still live here and conservatively comps at $440K

Lessons learned? Challenges?

Old houses = lots of sweat equity and $ but very well built. Make sure to hire an inspector, do NOT skip this step. We knew ahead of time we would need new electrical and plumbing, so were able to budget/time the repairs accordingly.

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

Yes both a real estate agent and lender.