Our first investment. The Auburn House

[Jessica Lonbeck]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $306,000
Cash invested: $11,000

This property has one house 1,644 sqft 3bd 2ba build in 1901. It's also on 0.36 acres and we will add at less 3-4 units on to the property.

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

Looking at this property. We could see more than one exit strategy and the fact that it has 0.36 acres. Made it ideal for building additional units. Being that my husband has been building for the last 20 years and I also having some experience in construction. We are confident that we can build what we need on the property to make it work.

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

We found this property though word on mouth. We did have to negotiate some with closing cost. But the big huddle was the bank appraiser. They listed 2 pages they want done before closing. Which took us 64 days to close 1 was to have the back garage/shed taken down & hauled off, because it should be condemned. Which was not true. After we had a structural engineer look at. it just need a new roof. So don't always take what the appraiser says. look into it and find a way to make it work.

How did you finance this deal?

Conventional when interest being so low why not.

How did you add value to the deal?

We will add 3-4 more units and add a new garage to the existing house.

What was the outcome?

hopefully with enough units to cover most of not all of our income.

Lessons learned? Challenges?

Do your homework and just do it. look at all to the ways you can use the property and if you come across a hurdle learn to jump over it, though it, or around it.

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

Yes Alex Elder with More Reality Salem, OR. He was an awesome real east agent. Who was will to go out side of the norm because he understood this was an investment for us not just a home buy. Could not recommend him enough.