All Forum Posts by: James Parker Tussey

Mack, 

I misspoke in my previous post! I initially started the project using 50k of my own funds to get the project started and was able to start drawing on a construction to permanent loan of up to 250k to bring the total construction costs to around 300k all in. The home has appraised for 395k. My strategy is to live in this home as my primary residence and sell in 2 years for above the appraised value. The comparable sales in my new construction neighborhood are suggesting this could be possible in a couple of years. 

In the two years living here I will hopefully be able to obtain a HELOC against the appraised value to get funds to purchase a rental property in my area. After selling in 2 years, I will also be able to take the proceeds and invest them accordingly into a new primary residence or other rental properties.

Investment Info:

Single-family residence other investment in Nicholasville.

Purchase price: $300,000
Cash invested: $250,000

New Construction home in proximity to Lexington, Kentucky. Looking to hold as my primary residence and sell in a few years. I have also been able to house-hack and have roommates to subsidize my mortgage!

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

Knowledge in new construction and the lack of inventory in my area.

How did you finance this deal?

Worked with a local bank to obtain a construction to permanent loan.

How did you add value to the deal?

I worked as a project manager and had good relations with local contractors to save money on build costs.

What was the outcome?

Currently living in the new construction! Will be living here until I can extract my equity.