Remote purchase, sight unseen.

[Chris A.]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Oak Harbor.

Purchase price: $457,000
Cash invested: $29,000

Was moving from VA to WA for work. Due to work schedule and COVID restrictions I was not able to see the property in person prior to purchase. It has two houses on one lot, I live in one and rent out the other. Mortgage is just under $2,500 and the rental house brings in $1,600.

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

It was a win on multiple fronts. I like that it is on a 2.5 acre lot, and with two houses it is financially equivalent to having a duplex but the houses are spaced out enough to provide plenty of privacy.

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

I found it for sale online, called the agent and asked for a discount if she represented both sides. She agreed and I received a 1% credit after purchasing the house.

How did you finance this deal?

Conventional with 5% down was the best option for me at the time. FHA was similar terms but PMI would stay for the life of the loan where conventional automatically drops once the payments bring the principle amount owed to below 80%.

How did you add value to the deal?

So far just some landscaping and a 10'x16'storage shed (since there is no garage). Long term I plan to add a garage and possibly more land from neighboring parcels.

What was the outcome?

While I prefer to walk it in person, technology is mature enough to do the transaction remotely. I still would prefer to view the properties in person for future transactions if available, but I still consider this a success and I do not regret the purchase at all.

[Noah Zuniga]

Have you thought about adding a garage with a mother-in-law (MIL) suite above it? We have something similar in Oak Harbor and the MIL is 500sqft and rents for $1100 including utilities.