All Forum Posts by: 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

Investment Info:

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

Purchase price: $55,000
Cash invested: $75,000

My latest acquisition, a side by side duplex with freeze damage. I came across this and couldn't pass up the opportunity, was working on the corner house when I found this deal. So the corner house is on hold while I get this oil rig up and running (more income potential). Finally a house that isn't a total gut. Should have the one bedroom unit on the right side up and running in a month, then hammer away on the left side unit.

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

Another deal I procured by reaching out to the owner of an obviously distressed property.

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

I subscribed to the white pages online, found the owner's contact information, and started communicating. I laid in the weeds and didn't appear to eager, I eventually prevailed!

How did you finance this deal?

Conventional construction loan.

How did you add value to the deal?

Adding a heating and cooling system (the reason this house was not operational), and minor interior renovations.

What was the outcome?

Outcome is yet to come...? Hopefully

Lessons learned? Challenges?

Trying to move on these reno projects faster, time is the enemy of carrying costs.

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

Becky Hermanson-Hill, a true professional and a joy to work with.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000
Cash invested: $6,000

A currently dead oil rig, needs to be revived and put into service. Right now we're replacing windows and installing new siding, inside is gutted. I bought a duplex since starting on this that needs less work, so this one is on hold waiting for the duplex to be put online.

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

Tough to find a cute little house on a corner lot for $15k! I'm very excited about this house, and can't wait to continue and finish the renovation project.

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

I reached out to the property owner as the house had been sitting without progress the whole time I was renovating my dollar house right down the street. I gave him exactly what he wanted as others had been trying to buy it and never could. It was a great deal but has a long ways to go still.

How did you finance this deal?

Construction loan!

How did you add value to the deal?

Interior/ exterior renovation will add value.

What was the outcome?

No outcome yet! She's on hold for now.

Lessons learned? Challenges?

Stop buying full guts

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

Julie Wesley-Smit

Investment Info:

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

Purchase price: $95,000
Cash invested: $35,000

My first investment property, which I house hacked, renovated myself in both units, basically roughed it for a long while!

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

House hacking, living in one unit and letting the proceeds from renting the other unit pay for my living expenses.

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

Through the MLS, haven't found a deal on the MLS since. I've dug up every deal since.

How did you finance this deal?

FHA

How did you add value to the deal?

Full renovation

What was the outcome?

Both units are furnished rentals on airbnb and vrbo, and doing well!

Lessons learned? Challenges?

Have your sewers cleaned every other year for peace of mind...cheap insurance!

Investment Info:

Single-family residence buy & hold investment in Albert Lea.

Purchase price: $1
Cash invested: $45,000

A single family home that hadn't been lived in for over a decade! (I think 12 years). I purchased this property for $1. It was borderline on being a rehab, but now it's a cute little space that does great on airbnb!

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

Priced right.

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

Friend of the family, wanted out.

How did you finance this deal?

It was a buck! But got a construction loan for the rehab. All that equity is still sitting there, haven't BRRR'd it yet.

How did you add value to the deal?

A full interior/ exterior rehab, and rescue the foundation from failing. This is a long term play.

What was the outcome?

A busy little airbnb home!

Lessons learned? Challenges?

Looking forward to more deals that don't need so much work, this thing took a year! But was mostly my own labor on nights and weekends.

@Miguel Bautista congratulations! Are you house hacking?

I've steered my furnished short term rentals away from VRBO for Airbnb.  Fortunately, I haven't had the bad experiences you speak of.  I've found VRBO to be higher in fees, and more bad experiences with customers from VRBO versus Airbnb.  Just my personal experience.