I just read an interesting post in this forum on the worst tenant/ trashed then rehabbed again experiences.
After months of reading Bigger Pockets books, taking in podcasts, forums, etc., I am starting to notice that buying 100k properties is usually in difficult neighborhoods, tenant problems, etc.
Question: there is an upside right? Is anyone building their wealth one house at a time BRRRR or otherwise?
I need some real world inspiration!
We have an arms length niche where we concentrate on low priced C-class properties & farm them out to others who approach us.
So here's one of the many we have done over the last 20+ years. Picked up a duplex in foreclosure for $13,500 & both units had gutted kitchens & baths. Had my guy put in new kitchens & baths for $1500 in materials. Our agent had a guy tired of $425 lot rent & a moldy single wide. He took it 'as is' CFD for $38k @ 13% 15 years. Rented out the other unit, paid all ongoing maintenance & makes a direct deposit including escrow/month for taxes, ins, water & trash. He has 18 months left.
A recent one. We picked up 3-plex for $46k held it CFD for $67k @ 14%. They collected the rents, maintained it & after 9 years 8 months stopped paying the $1300/month (this included escrow for taxes, fees etc) so we evicted & immediately sold it 'as is' for $30k.
We have done & continue to do a LOT of these.
I got a good story . I just sold a house today to my tenant . Was a great feeling for all involved ! I get a nice return without the tenants termites and trash and she gets to own part of the American dream that she probably would have never had an opportunity to do otherwise . It’s possible to turn a tenant into a homeowner and everybody can win even the closing attorney wins! I even gave her a 50$ home depot gift card at closing as a house warming gift .
Yes, these are the best deals. I literally sniff out nasty stinky cat pee infested ran down shooter shacks. We draw straws on who gets to roll up the carpet.
Were doing very well.
Homes in the Hood
Yeah, of course there's an upside. We keep inching toward wealth and many of our tenants actually like and respect us.