Investment Info:
Townhouse buy & hold investment in Chesapeak Bch.
Purchase price: $234,000
Cash invested: $4,000
This was an "easy kill." its was a foreclosure owned by the bank, with minor needs, like a refrigerator, a new toilet in the basement and an inspection of the chimney. We lived in it for three years and house hacked for one year, until we saw a bigger house down the street for an incredible price. Now this house cashflows 600/mo. This home was originally 234k and now its virtually impossible to find homes like it in the area for under 300k. In four years, its turned out to be incredible!
What made you interested in investing in this type of deal?
It was slightly below market price! It also wasn't too "luxury," which meant it could use a little personal touch from us. and we didn't have to pay wild prices. The work needed was minimal. A similar house down the street needed tons of work and cost only 8k less, so we thought....YES, LETS DO THIS!
How did you find this deal and how did you negotiate it?
It was an easy process. No crazy negotiating.
How did you finance this deal?
VA Loan! it was a great experience!
How did you add value to the deal?
Renovated two bathrooms, repainted the whole house, added a security system, improved lighting, and installed new floors in the kitchen and two of the bathrooms. Upgraded storage in the utility room.
Lessons learned? Challenges?
The biggest take away from this was...buying property is not as intimidating as we thought it would be! Just had to dive in!
