Buy and Hold Goes From Bad to Terrible for a $10K Profit
Investment Info:
Single-family residence buy & hold investment in Beaumont.
Purchase price: $21,000
Cash invested: $21,000
Sale price: $30,000
Bought a 2/1 that needed quite a bit of updating, but it had an elderly tenant in it that had health issues. She also had a son staying there that didn't work or helped her at all and shouldn't have been staying there. The original lease agreement had been expired for a long time if there ever was one. The seller was an older gentleman himself, in his 80's, and this was his last rental. He needed to sell it because he was afraid that if something happened to the tenant he would have to deal with her son and the tenant's daughter who lived across the street. This is in a really rough area of town.
The rent was $750/ month with housing picking up $624. We bought it on September 8th or so and we received our first housing payment on October 2nd. Unfortunately the tenant passed away on the last day of September. I had some trouble getting her son to leave but he was out by mid November and I ended up paying him $250 to help him leave.
The house remained vacant for a couple of months and I ended up "wholesaling" it to a local investor who fixes them up himself and then sells them owner finance. He paid me $15,000 at closing and will make $1000 payments for 15 months.
Even though I only owned it for a few months, this house was a horror story, lol. I had a tenant pass away, an upset family and son who I had to pay to leave, a homeless woman move in (my handyman found her as he crawled in through a window cause he didn't have the key), and oh yeah I got punched in the face by an apparent random druggie walking down the street. In the end, I'll still end up with about $10K in profit, so I guess I'd get punched in the face for another deal like this one.