Investment Info:
Single-family residence other investment.
Purchase price: $90,000
Cash invested: $18,000
Sale price: $196,000
Bought a tax foreclosed property from the city and house hacked it. I did the repair work myself, mostly (there was a roof leak someone else did).
I initially bought the house with the goal of converting it into a group home, the house was fully ADA compliant (minus the code violations) and even had an elevator! Unfortunately, I had some issues with my partners and the plan fell apart.
Nevertheless, I was able to shift gears and then used the property as a short-term rental for 2 years.
What made you interested in investing in this type of deal?
I wanted a group home.
How did you find this deal and how did you negotiate it?
This was a city tax foreclosure, I was able to get them to take 30k under asking.
How did you finance this deal?
Initially hard money, then converted to conventional
How did you add value to the deal?
Paint, carpet, new air conditioning unit, drywall repair. New Tankless Water Heater. Added a fence. New Shower.
What was the outcome?
Sold at a profit, but also made a great return as a short term and mid term rental.
As the market in Milwaukee heated up I felt it was time to move on, I sold the property for a decent windfall and have been looking for new opportunities ever since.
Lessons learned? Challenges?
Pick better partners.
