Twin cabins deal - buy one get one almost free

[Brian Pfiel]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $87,000
Cash invested: $25,000

Twin cabins on 1AC lot in mountain community of north Georgia.
Still under rehab process for one of them.
Homes are siting very close together in a wooded lot.
Community provided water service with a single septic for both units.

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

Rental potential in a attractive vacation spot.
Second cabin with no lean and would be owned out right.

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

Used a local agent. Negotiations were based around how they are needing repair.

How did you finance this deal?

regular mortgage with down payment

How did you add value to the deal?

rehab unit and vacation rentals

What was the outcome?

The deal turned out to be in our favor by having the largest unit plus two lots under the mortgage and the second purchased at the closing for 10 bucks! A full cabin for 10 bucks!

Lessons learned? Challenges?

Challenges had to do with units being on a shared septic, not connected together and diff 911 addresses.
Most lenders will not give a single loan with both units under it. The deal turned out to be in our favor by having the largest unit plus two lots under the mortgage and the second purchased at the closing for 10 bucks! A full cabin for 10 bucks!