All Forum Posts by: Brienna Roberts

Sorry for the late response! This property is in East Jordan, Michigan. All of our rentals are in the small communities surrounding Lake Charlevoix.

Investment Info:

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

Purchase price: $776,000

This is a 4 unit townhome complex. Each a 1350 sq ft 3/2.5. Brand new build. We're purchasing from the builder and will be using as four short-term rentals.

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

I'm a realtor, so I called on the property thinking I may help the builder sell them, but I quickly realized this deal is something we should consider. It's right across from the park and beach in a waterfront community that is expected to flourish in the next 3-5 years since the waterfront factory has been torn down. When we offered to buy all units, the seller happily considered financing because he had hoped originally hoped to keep two for 5 years so he could make some money over 5 years.

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

This deal was very organic. Seller had the goal of making money over 5 years. So he wanted to sell two units and keep two. To do that, he needed to set up the condominium association which costs $20k ish and a lot of time. By selling all units to us, he didnt need to do that, and because he's financing he will earn money over 5 years like he hoped.

How did you finance this deal?

15% down LC at 6% interest with 5 year balloon. 6% is below prime! But he did that because there's only a 1% pre-payment penalty so he didnt want to incentivize us to refinance. He isn't greedy. Happy to be making 6%. The 15% DP is financed through our private money lender. 1 year loan ($150k) at 5%. That includes 35K to furnish 4 units.

How did you add value to the deal?

None yet. This will become a very successful STR. It's a brand new build, includes all appliances (W/D too). 18month builders warrantee. Upgraded finishes, painted nicely.

What was the outcome?

This is our latest deal. We're working on furnishing them now and they will be available to rent in May!

Lessons learned? Challenges?

It's interesting how easy things can be when you listen to the seller's motivations and interests and shift your thought process to make your offer as appealing as possible. Sometimes less is more.. This guy negotiated DOWN the price for us. He was selling at $146/sq ft but because we bought all of them. he offered $144. We were willing to pay more, but let him do the talking and then graciously signed on the dotted line!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000

It's a 5/4, in a neighborhood that borders the property of the largest wedding venue in Northern Michigan (Castle Farms). The house was formerly the veterinarians house back when the Castle was actually a dairy farm. Original wood floors arched doorways, leaded glass, etc. Its beautiful. It was renting well as a STR but poorly managed. It came with the 3000 sq ft house and a 4 car detached garage with a 1/1 apartment above it.

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

We have become quite successful with short term rentals. The proximity to the wedding venue and charm/uniqueness of the house made it an easy decision to buy.

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

This house was owned by our private money lender. He purchased it in 2018 because it had shared beach access to 'his' beach. He wanted that gone. He renovated this old, beautiful stone home. He offered to sell this house to us since his motivation to own it (removing the shared water access easement) was gone.

How did you finance this deal?

Private money loan. $0 down, 4% interest, 5 year balloon. Technically a land contract.

How did you add value to the deal?

Continuing to improve its appeal as a short term rental through better advertisement and marketing, updated furnishings, etc.

What was the outcome?

It rents for $900/nt during the wedding season (May-October). Grosses $75k annually

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000

This house was owned by our private money lender. He purchased it in 2018 because it had shared beach access to 'his' beach. He wanted that gone. He renovated this old, beautiful stone home. It's a 5/4, in a neighborhood that borders the property of the largest wedding venue in Northern Michigan (Castle Farms). The house was formerly the veterinarians house back when the Castle was actually a dairy farm. Original wood floors arched doorways, leaded glass, etc. Its beautiful. It was renting well as a STR but poorly managed. It came with the 3000 sq ft house and a 4 car detached garage with a 1/1 apartment above it.

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

We have become quite successful with short term rentals. The proximity to the wedding venue and charm/uniqueness of the house made it an easy decision to buy.

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

Our private money lender offered to sell this house to us since his motivation to own it (removing the shared water access easement) was gone. He offered a $0 money down, 4% interest loan with 5 year balloon.

How did you finance this deal?

Private money loan. 4% interest, 5 year balloon. Technically a land contract.

How did you add value to the deal?

Continuing to improve its appeal as a short term rental through better advertisement and marketing, updated furnishings, etc.

What was the outcome?

It rents for $900/nt during the wedding season (May-October). Grosses $75k annually

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $500,000
Cash invested: $16,000

This is a 4700 sq ft home near a large wedding venue (Castle Farms), it is a 6/4.5 and sleeps 14 STR guests.

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

Its borders one of the largest Wedding Venues in Michigan. Also, when it was first available FSBO, it had shared lake access within a neighborhood. We were approached by a property owner who also had shared access to see if we wanted to buy it and remove the water access easement in exchange for a 100K discount on the property and a very reasonable private money loan.

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

It had been for sale for 3-4 months by owner in the winter/early spring. We offered at that point, but no go. They pulled it off the market but we re-approahed them later that spring because we knew they were living 300 miles away. Came to a deal. Had to hide the fact that neighbor was financing the deal because they didnt get along. It was a bit sticky. We had to keep our plans of STR a secret as well. No agents involved other than myself.

How did you finance this deal?

Private money loan. 4% interest with a 5 year balloon.

How did you add value to the deal?

We have painted the house, replaced all the windows and beautifully decorated, furnished. We converted the formal dining room into a bedroom so as a STR, it sleeps more and brings in more $ so more valuable to anyone who may want to purchase for the same reason down the road.

What was the outcome?

It rents for $1100/nt during the wedding season (May-October).

Lessons learned? Challenges?

hmm... hire a handy man. We're to the point now that we can't do it all ourselves. Roger is amazing:)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $119,000
Cash invested: $45,000

This house is super unique.. It is a berm house so it's as if you're living in a walkout basement. The space above is full of potential, but currently just one large open space. It did not have egress windows in the 3/1 when we bought it so it was listed as a studio. a 1100 sq ft studio with a 2 car garage, on 2 acres situated on river front about a mile from town. We renovated (ripped down to the cement block), added egress windows and now rent for 1600/mo.

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

Lots of opportunity to increase value because it could only be considered a studio without egress exit in the bedrooms. The house faces away from the road, so it's very unique but perfect for LTR. It's literally bomb proof. Constructed of cement on the lower half and an amazing opportunity to turn the upstairs into living quarters making it an easy duplex down the road.

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

My husband is always looking for the weird houses that sit on the market. This thing was ugly with old soggy paneling and standing water on the floor (but its all cement)! it was listed for 140 at the time. We offered 105 and got it for 119.

How did you finance this deal?

Portfolio loan. We had a lot of equity in another property so just shifted some of it to this one. Paid for the renovations with cash made off other rental properties.

How did you add value to the deal?

The 'attached' garage did not have access through the house, so we cut a door into the living room to add appropriate access. Added egress windows to all bedrooms, gutted it 100%. New insulation, water proofing, electrical, renovated bathroom, new flooring, drywall and paint.

What was the outcome?

Currently renting at $1600 a month. First two years rented to the same amazing tenants at $1450 until I helped them buy their first home.

Lessons learned? Challenges?

lessons? Look for the ugly houses. Our first tenants actually looked at buying this house before we did but couldn't stand the thought of living in the house and seeing all the work that needed to be done. Its no worth $240-260k

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $665,000

STR on Lake Charlevoix. 250 ft of water frontage and 4 miles from Boyne City. It had two small cabins closer tot he water that were nearing end of life, but we knew if we could make money renting the house, the cabins would cashflow well too after some work. We bought and furnished in 2 weeks and had it rented nightly starting in Sept 2021. Gross income around $80,000. Occupancy varies with the season. Most draw is in the summer because we provide amenities to use in the water like SUPs and kayaks, outdoor fireplace, boat rental, etc.

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

We knew the value would only increase. We had no idea to what extent, but 5 acres on Lake Charlevoix and with three potential dwellings/rentals on one parcel, it would be a cash cow

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

This house sat on the market for almost 2 years. Over priced. People saw the cabins as an eye sore and they were! We always look for listings with terrible photography and marketing. This was the perfect example. We offered low.. It was listed originally at 899. Down to 799. We looked at it then but didn't offer until it hit 720. We offered 600 and got it for 665.

How did you finance this deal?

A portfolio loan with a small local bank. We sold one of our previous rentals for downpayment (1031 exchange) and used the other as collateral into the portfolio loan. Terms: 5/1 ARM at 4.5% amortized over 25 years. We couldn't have been happier

How did you add value to the deal?

Fixing up the cabins and bringing life back to the home that sat vacant for 2 years. Added central air, renovated bathroom, pulled down wallpaper and updated with paint. Furnished it well and focused on the beautiful water views.

What was the outcome?

We are nearly finished with the cabins which should rent for $250/nt each. (probably 100 nights a year). The house rents well and generates $80K/yr

Lessons learned? Challenges?

Buy something everyone will always want and is in limited supply... lakefront property.