The little house on the hill

[Luke M.]

Investment Info:

Single-family residence buy & hold investment in Owatonna.

Purchase price: $35,000
Cash invested: $35,000

The little house! An investment I enjoy so much I decided to move into it for now. It's super cheap, holds a boat load of equity, and will someday become a very profitable airbnb/ vrbo unit. A full gut inside and out, lots of charm and overlooks a nice large park with a creek off the front deck.

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

It's right next door to my 2009 purchased duplex, great lot overlooking a park, and got a great deal on it.

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

The state of Minnesota held rights due to healthcare liens, thankfully no one was putting offers on it. It needed a TON of work when I bought it and the basement had mold and water in it.

How did you finance this deal?

Conventional financing with a construction loan.

How did you add value to the deal?

Full exterior renovation, steel siding, new roof. Gutted the inside, repaired the horrible framing and put it back together with new plumbing, wiring, hvac, spray foam insulation, etc.

What was the outcome?

So far it's occupied by a squatting investor/ owner.

Lessons learned? Challenges?

Fighting the urge to move out and rent this, I like it too much.

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

Julie Wesley-Smit