Government foreclosure that just needed a little TLC and vision.

[Joel Brown]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $77,420
Cash invested: $16,000

USRDA Foreclosure with hardwood floors. Cosmetic rehab plus new shower, electrical panel, and gas fireplace insert. Potential flip in future if rent rate decline

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

Great price for a very solid house in a great neighborhood

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

It was a government foreclosure. Bidders had 5 days to submit bid and 30 days to close with cash

How did you finance this deal?

I rolled a loan intended for a previous house and quickly qualified fro this new house (I ended up buying the other property with a home equity loan)

How did you add value to the deal?

We painted and did repairs ourselves and acted as general contractor for electrical and Plumbing updates. We modernized the outside and inside paint and furnishings (new gas stove, fireplace insert, and tub/shower).

What was the outcome?

Cash flowing ~$400/month and has nearly doubled in value since purchase

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

Realtor who became very knowledgeable about foreclosures