I bought my first rental for $4,000.

[Kelsi Dockins]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $4,000

Cash invested: $17,000

Bought this baby for $4,000 on Hubzu.com in November 2018. Rehabbed from Washington State. Was done and rented by March 2019. Used cash so it is all paid off and now renting for $650 per month.

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

Honestly, I had been looking to buy a foreclosure in Washington State for 2 years and finally gave up. I went to Hubzu and sorted price from low to high. This property was one of the cheapest foreclosures in the nation. I bid and I won.

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

Hubzu.com, I was the only one who bid.

How did you finance this deal?

I used cash

How did you add value to the deal?

Fixed roof, re-ran electrical, new electrical panel, new flooring throughout (ceramic tile and laminate), new plumbing in bathroom and kitchen, everything in kitchen new, painted.

What was the outcome?

Rented at $650 in 4 months

Lessons learned? Challenges?

Every time a contractor was paid, they disappeared! I would definitely be more cautious about contractors and I never made a trip down to see the home, so next time will walk the house before buying. I got super lucky!
Mistakes I made: Laying ceramic tile instead of linoleum. Maybe should have done carpet instead of laminant. The house is 2,100 sq ft so even cheap flooring was pricy.
Positives: The jobs were itemized with the contractor and I only paid each line on completion. This worked out r

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

I represented myself and the other agent was pretty terrible on a $4,000 home.

[Dennis M.]

I just bought a big single family 2 bed for 10k recently so I share your joy . I'll have about 2k in rehab . These cheap houses are just too good to pass up . The ROI is insane if you can play the game right . Don't listen to the naysayers or frightened people ,Buy up as many as you can and sit on them . Rehab them right ,get a good tenant in and keep buying them . Your going to have people tell you that your foolish and taking on risks buying at this price point ..but put the blinders on ,stay laser focused and repeat the process