Subdivide to Build Garage for our Primary Residence

[John L DeVitto Jr]

Investment Info:

Single-family residence buy & hold investment in Atkinson.

Purchase price: $299,000
Cash invested: $88,000

This was a personal investment! We live on a lake and have a small lot. This lot was on the other side of the street with an acre of land. Gives us the ability to subdivide and put a garage on that land. We renovated the home and rented it out for $2k per month, giving us a return of $400. We haven't decided once it is subdivided if we will keep it or sell the house to get our cash back since it is only giving us a 6% COC Return.

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

We needed the land to build a garage and add an office above it to make it big enough for my family to live here forever.

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

MLS, new the market in the area and waited for the right price to buy it.

How did you add value to the deal?

Remolded the entire home.

What was the outcome?

Got $400 more in rent per month. Again this was a personal investment to gain land for our garage. Very pleased with the rental amount in the area. There is not a lot of rentals in this town.