$225 monthly cash flow with zero invested in the deal.

[Mat Zalk]

Investment Info:

Single-family residence buy & hold investment in Tulsa.

Purchase price: $21,000

Cash invested: $35,000

This is a 2 bedroom/1 bath project that started as a deeply distressed sale and ended as a beautiful rental unit that cash flows nicely on zero of the investors' own dollars.

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

My investors and I liked the potential for the neighborhood. Habitat for Humanity is acquiring lots and building SFRs nearby, and we believe there is potential for upside in the general area.

This property was deeply distressed when our investor acquired it. Keyrenter Tulsa property management oversaw the entirety of the contracting, and then marketed and the rented the property.

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

We acquired this through a wholesaler from whom we often purchase.

How did you finance this deal?

Bank financing. With $56,000 invested in the property, the investors were able to get a loan for $57,000 (75% of appraised value of $77,000).

How did you add value to the deal?

Electrical and plumbing (re-configured bathroom/re-plumbed the house), installed new windows, patched exterior stucco, removed walls, closed a redundant cased opening in living room. In kitchen, we installed custom cabinets, tile, sink, counters. Throughout the house we sanded/applied polyurethane to the floors, and painted the exterior. and painted the exterior. We did front chain-link fence, and installed a privacy fence that separates the lot into two (rentable back unit completed soon.

What was the outcome?

Unit rente at $775 a month. Had it been completed in the right season, we likely could have gotten $50 more.

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

Would recommend my entire team! My guys are amazing, from lenders to contractors. 

[Mat Zalk]

In case anyone is interested, before and after photos available here!