8,000 invested with 300 a month cash flow
Investment Info:
Single-family residence wholesale investment in Citrus Heights.
Purchase price: $265,000
Cash invested: $8,000
Bought this property from another investor. It needed some updating and minor cosmetic work. Put about 8,000 in material costs, and I put in the labor.
What made you interested in investing in this type of deal?
It was an easy property to do as a beginning investor. Lots of cosmetic issues and some modernization of bathrooms and the kitchen made it an easy and low risk investment.
How did you find this deal and how did you negotiate it?
I got this deal another investor that was helping sell for another investor.
How did you finance this deal?
Private lending with no money down for the note. $8,000 came out of pocket for material, and I saved the rest on labor cost by fixing the issues myself.
How did you add value to the deal?
I added value by having the time to fix the cosmetic issues and modernize the kitchen/bathrooms, found the money partner, and deal with the tenant that the current owner was having issues with.
What was the outcome?
A great looking house that produces 300 monthly cashflow.
Lessons learned? Challenges?
Do cash for keys sooner. The tenant was leery to move until we offered to pay for trash fees and cleanup for him.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not on this one.