My First Purchase was an REO
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $28,000
Purchased first home which was bank owned for $27k. Asking price was $34k.
Plumbing repairs were $3k
Rented home out for $850/month. Home is worth around $50k will cash-out re-fi in 6 months to complete the final R in that BRRRR process!
What made you interested in investing in this type of deal?
I was looking in this area after speaking with a property manager. Saw the home listed online and it was sitting for awhile. I figured if there was a way to pick up for the right price there would be little downside.
How did you find this deal and how did you negotiate it?
Home was listed on all major real estate web-sites.
How did you finance this deal?
Paid cash due to low amount of price.
How did you add value to the deal?
Some pipes were damaged in the basement which were repaired.
What was the outcome?
Rented for $850/month and now have about $30k in equity. I may cash-out refi in 6 months or just hold.
Lessons learned? Challenges?
This was my very first deal, so I was considering more expensive properties. I figured for this home I can own out-right and just get the 1st home under my belt. Being out-of-state, I also was keen on building up my network and am now working with a terrific property manager, real estate agent, and lender. All of which started with this one home.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes...if interested in this info, just shoot me a message :)