Paid Off Land Contract Home

[Account Closed]

Investment Info:

Single-family residence buy & hold investment in Calumet.

Purchase price: $32,500
Cash invested: $36,500

3 bed 1 bath single family home @ 1100 sq. ft. With garage on a .25 acre lot.

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

I just wanted a house at the time. It was cheap and the seller was offering to carry the note.

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

Some website. Can't remember.

How did you finance this deal?

Land contract. Simple interest, no balloon. 30% down with a 5 year payment term, which has since been satisfied.

How did you add value to the deal?

I installed a new boiler and added quite a bit of sweat equity.

What was the outcome?

I own the home flat out, and now that I'm house hacking a different property, this will be straight profit, minus taxes. Also, if something ever goes wrong during the fledgling phase, I always have a home.
I haven't had the home appraised, but it should certainly be able to sell for twice the purchase price.

Lessons learned? Challenges?

Pay more attention to what you are buying, and always remember that people are full of it.

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

No.