This Virginia historian bought an ‘unlivable’ house for $16,500 in 2020 and transformed it into her dream home — Here's how to invest in real estate if you're priced out of today's market
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Betsy Sweeney bought a crumbling 130-year-old house for $16,500 in Wheeling, West Virginia and renovated it into a gorgeous historic home — complete with its original pocket doors, Victorian fireplaces and a vintage bathtub.
"From the time I was a little girl, I always wanted to live in a big old house," Sweeney recounted on CNBC Make It late last year.
The architectural historian purchased the 3,075-square-foot, three-bedroom property in May 2020 when she was only 27 years old. She called it "unlivable" due to insufficient water filtration, brick degradation, and structural issues.
Don't miss
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here's how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
Cost-of-living in America is still out of control — use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or says
Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's how
Sweeney's home transformation highlights the significant impact of renovation on a property's value. As the Joint Center of Housing Studies of Harvard University reported, Americans collectively invest $500 billion into home renovations annually with specific enhancements, such as garage door replacements or steel doors, boasting ROIs exceeding 100%.
Sweeney couldn't get a traditional mortgage, so she paid for it in cash and then secured a $100,000 construction loan to do the necessary renovations while preserving the building's stunning historic details. With the median price for a home in the United States at $387,600, Sweeney proved that you can still get your foot in the real estate door without paying top dollar.
Alternatives to buying property
If you’re not looking to purchase a physical property and undertake a complete makeover, but you still want to build wealth through real estate, there are a number of options available to you.
First National Realty Partners (FNRP) is a private equity firm that makes commercial real estate accessible to everyday investors through its online platform.
FNRP gives you access to institutional-quality, grocery-anchored commercial real estate investments, and you don’t have to scope out the deals for yourself. FNRP’s team of experts manage every step of the investment process so you can enjoy the rewards of necessity-based real estate instead of becoming a home renovator.
That being said, if residential properties are more your style, you can use Arrived — an online platform where you can invest in shares of rental homes and even vacation rentals — to get into real estate without taking on the responsibilities of property management.
Getting started is simple. Begin by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy. With Arrived, you can start investing in real estate with just $100.
If you're looking to invest in real estate like a mogul, check out RealtyMogul. The crowdfunding platform lets you explore institutional-quality real estate opportunities and review their performance history before deciding where to invest your money.
RealtyMogul also offers REIT options that focus on income and appreciation, so you can take advantage of these vehicles known for generating steady returns.
Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)
Make the value of your home work for you
The median price for a home in the U.S. was sitting at around $403,714 in December, according to Redfin data, and with mortgage rates hovering around 7%, it’s no longer feasible for many Americans to invest in real estate by purchasing a home — unless they use more creative avenues, like Sweeney did.
“It is not realistic for most of this country to buy a house that is several hundreds of thousands of dollars,” she said.
If you do own a home, you can score tax credits and rebates for your renovation projects by making energy efficient upgrades such as installing heat pumps.
If you’re keen on sprucing up your home with renovations, but don’t have the cash at the ready, a cash out refinance loan from Rocket Mortgage can help you access your home’s value.
A cash-out refinance is a form of mortgage refinancing that lets you borrow a larger mortgage than you currently have in exchange for access to your home’s equity — aka what you’ve already paid off of your home’s value.
With Rocket Mortgage, it takes just three minutes to get a credit approval and brings you one step closer to finding the best cash-out refinance loan for you.
What to read next
These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds
Jeff Bezos told his siblings to invest $10K in his startup called Amazon, and now their stake is worth over $1B — 3 ways to get rich without having to gamble on risky public stocks
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
