Getting paid to buy a rental property

[Daniel Tanasa]

Investment Info:

Single-family residence private money loan investment.

Purchase price: $164,000

I bought this house with Private Money from a Wholesaler sight unseen.
The rehabbing of the property was a bit over 33k which included a new HVAC System, Floors throughout the house, new bathrooms vanities, kitchen countertops paint and a lot of sheetrock work and trash removal.
After the rehab was done It appraised for 294k. When I refinanced it I pulled all my money out and got paid 10k at closing for this deal.

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

I was familiar with the area and knew it will be a great property after rehab.
Was a complete mess inside, very bad smell, rat infestation and all the attributes making it a good deal for an investor.

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

Was from a wholesaler. I called them right after I got the email and put an offer sight unseen before the showing day to make sure I get it. I had to actually pay a bit more then the initial asking price which was 160k. But their estimated ARV was around 250k so I knew I actually have more room in reality being closer to 300k.

How did you finance this deal?

bought it with Private money which financed 100% of purchase price and gave me 30k for rehab so I went with $0 at closing. Then I refinanced in a DSCR loand and I got paid 14k at second closing.

How did you add value to the deal?

Rehabbing

What was the outcome?

Got paid 10k to buy the deal.
Now my monthly payment is around $2150 and the house is rented for $2500 to another investor who is renting it by the bedroom.
I attached some pictures of the before and after of the house.

Lessons learned? Challenges?

I had a previous tenant that was living in the garage and had to do a Holdback from the seller until he moved all his stuff ad to make sure I won't need to evict him. He eventually got arrested and his friends came and picked up his stuff. :))

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

I self represented myself on this one.