Buy and hold
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $13,000
Cash invested: $4,700
A friend came to me and told me about a mutual friend that was in rehab and didn't want to come home to her house. I made her an offer and she accepted. This house needed everything but electrical and siding. HVAC, roof, some windows, cabinets, two full bathrooms, plumbing, ductwork. One of my guys and myself finished it last week and are waiting on HUD inspection for a HUD tenant that will pay 1200/mo
What made you interested in investing in this type of deal?
I had done it before and it worked.
How did you find this deal and how did you negotiate it?
A friend brought it to me. I had heard they wanted 20k. I just offered 10k and after some back and forth we got to 13.
How did you finance this deal?
The lender who refinanced my first deal gave me the money up front for this one.
How did you add value to the deal?
We completely rehabbed the whole house except for siding and electrical.
What was the outcome?
HUD tenant for 1200/mo
Lessons learned? Challenges?
That while speed is important sometimes less is more in regards to labor. Experience compounds also.