A house saved and turned into a cash flowing property.

7 Replies

Investment Info:

Single-family residence buy & hold investment in Albert Lea.

Purchase price: $1
Cash invested: $45,000

A single family home that hadn't been lived in for over a decade! (I think 12 years). I purchased this property for $1. It was borderline on being a rehab, but now it's a cute little space that does great on airbnb!

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

Priced right.

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

Friend of the family, wanted out.

How did you finance this deal?

It was a buck! But got a construction loan for the rehab. All that equity is still sitting there, haven't BRRR'd it yet.

How did you add value to the deal?

A full interior/ exterior rehab, and rescue the foundation from failing. This is a long term play.

What was the outcome?

A busy little airbnb home!

Lessons learned? Challenges?

Looking forward to more deals that don't need so much work, this thing took a year! But was mostly my own labor on nights and weekends.

You may be surprised at how many property owners who are in a bad spot will walk away for a nominal sum. In order to mine the gold out of the deal you may have to deal with the owners lenders or other municipal headaches. But these deals often have the best return. Whenever you hear about an opportunity be sure to look at it from every angle.  The opportunity to make money might be their its just not obvious or conventional.  My Dad always said:" Solving problems equals money!"

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