1915 Victorian residence

[Matthias Pieplak]

Investment Info:

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

Purchase price: $139,000

Single family with mother-in-law suite, former 2-apartment set-up. 4 bedrooms, 2 kitchens, 2 bath.
Structure: 2-story wood frame, full front porch, small back porch, cellar room, full-size unfinished attic. 4 fireplaces, slate roof.

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

We were looking for a new personal residence with the potential to add value through cosmetic repairs and landscaping. Additionally it should be located in bicycle/walking-distance to the office and downtown.
This property presented itself at a discount because it hadn't been kept up and showed moderate wear and tear.
The 2-unit setup makes it perfect for house-hacking. Since renovating the 2nd floor, we use it flexibly as an Airbnb and for family and friends.

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

Zillow. Made 2 offers, seller accepted 2nd offer. Negotiated 9K in seller's help and repairs after home-inspection.

How did you finance this deal?

Dan Varda at GuaranteedRate. 5% down, 2.5% interest, 15-year

How did you add value to the deal?

Wrote a personal letter to the seller

What was the outcome?

Seller insisted we visit property and neighborhood in person.

Lessons learned? Challenges?

When you are moving states and switching jobs, it can be incredibly hard to anticipate all the evidence an underwriter will ask for.
Additionally, buying in a new state almost feels like being a first-time home buyer again. Find a realtor that stays on top of you and your lender to make sure the deal goes through without headache.