Buy and Hold from a wholesaler in Coolidge, AZ

[Josh Young]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $188,500
Cash invested: $25,000

I bought this property from a wholesaler who had just bought the property at the foreclosure auction. I used a 10% down payment private money loan that I will rate and term refinance after I do a light rehab and rent the property out.

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

It's an inexpensive property that only needed a light rehab and will cash flow with only 10% down payment and I was able to buy it below market value.

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

I found this property on the wholesale list and when I saw it a few days later I offered below asking and had the seller pay off the solar.

How did you finance this deal?

I used a private money loan for 90% of the purchase which I will rate and term refinance after I spend about $5k on the rehab and get the property rented out.

How did you add value to the deal?

I replaced the broken tub with a new shower and I'll be replacing the toilets, kitchen faucet, ceiling fans, new fixtures, and new paint on the interior, and new paint on the garage door and back patio.

What was the outcome?

I'm in the middle of the rehab now, so I will update this once I'm done.

Lessons learned? Challenges?

I always skipped over properties with solar, but I had the seller pay it off, so it's kind of a non-issue.

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

I am an agent, but this was an off market deal from a wholesaler, so my license wasn't necessary on this one.