My second rental was a repo and primary residence.

[Rodger Wilson]

Investment Info:

Single-family residence buy & hold investment in Longmont.

Purchase price: $175,000
Cash invested: $175,000

This was a bank repo. It had some holes in the walls and was missing things like toilet paper roll holders. We lived in the house for 6 years and then turned it into a rental.

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

It was in the right place at the right time for the right price.

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

A realtor friend took us to go look at it.

How did you finance this deal?

conventional mortgage.

How did you add value to the deal?

I fixed the drywall and bought missing appliances from craigslist. I also had it repainted and had new carpet installed. Later I also upgraded the furnace and finished the basement.

What was the outcome?

The house was then worth $350k.

Lessons learned? Challenges?

Living in a house and fixing it up is a really nice way to go. It also makes finding mortgages easier.