Worth the risk from beginning to end.

[Tammy Nehmzow]

Investment Info:

Single-family residence buy & hold investment in Minneapolis.

Purchase price: $29,000
Cash invested: $45,000
Sale price: $170,000

Rented for 10 years with rents varying over the years from $1,200 - $1,800 a month. Our family had to gut the basement entirely and rebuild it back with 3 bedrooms and 1 full bath. The home featured 5 bedrooms and 2 baths total with a large backyard.

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

The opportunity to buy a newer home that had water damage was a challenge we were willing to accept.

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

The deal was available on the MLS but the amount of work that was needed was intense. It was listed for $30,000 and we offered $29,000 cash with a quick closing.

How did you finance this deal?

We paid cash.

Lessons learned? Challenges?

This home was an intense challenge for us as we were still honing in our renovation skills. At one point we had to replace the tub surround and bathtub in the upper level bathroom. The surround did not fit through the bathroom door so my husband took out a wall in order to slide the surround in and then patched back up the wall. The biggest challenge was that the access hole in the wall was over the stairway.

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

We represented ourselves.