It was valued at 135K by whom? What did you pay for the house?
Sorry, this is a bit of a pet peeve of mine. It bugs me when people say, "We bought the house for $125k, but it was worth $135k." No it wasn't. If it was worth $135k, then it would have cost you $135k. The fact that you got it for $125k means that the other buyers looked at it, and decided that they wouldn't outbid you. Thus, it's not "worth" $135k unless you can find someone willing to pay $135k for it.
The fact that the county might have appraised it at $135k is meaningless. The county doesn't buy houses. All that matters is what actual buyers are willing to shell out. And in your case, you were the winning buyer, at $125k, so it wasn't "worth" $135k because nobody was willing to pay that much for it. It was worth exactly what you paid, and not a penny more, or someone else would have bought it.
Again, I'm not picking on you, just voicing a general pet peeve regarding when people try to overstate the value of their homes.
This is not always true.
I bought a house in 2012. A farmer owned it and was farming the land, but the house was worthless to him and he was renting it out. Just being silly we called him and asked if he wanted to sell it to us for 50k. He said yes! WTH? We were shocked and excited.
He felt 50K was what the land and outbuildings were worth, and he gave us the "house" for free. Because he thought it should be torn down, because it was a 100 yr old farmhouse, and who would want to live in that...
Long story short, we put under 20k of renovating into it, and redid the entire house down to the studs. We now have a practically new, "free" house, sitting on a 50k piece of land.
The house is now worth at least double what we paid for it.
He could have put it on the market and gotten a LOT more out of it. Small acreage is priceless in my area. But when I called and made an offer, he sold it to me on the spot because he didn't see the potential, and he didn't want to be bothered with it.
So you can't always say, "if it was worth more someone would have paid more."