My First Sub-To Deal

[Alexis Fentress]

Investment Info:

Single-family residence buy & hold investment in Hardinsburg.

Cash invested: $25,000

Subject-to deal. Purchase price $0; Rehab costs $25,000; Rented for $900/month; Monthly mortgage payment is $400; Cashflow = $500!

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

In the beginning, I didn't think the rehab was going to be very much.

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

Driving for dollars; noticed a long time family friend mowing the yard, so I pulled over and asked him about it. Turned out he owned it and wanted to sell!

How did you finance this deal?

Used cash for rehab costs.

How did you add value to the deal?

Owner told me I would have to track his ex-wife down in order to buy (he wanted nothing to do with her), so I did!

What was the outcome?

A brand new beautiful home is now rented.

Lessons learned? Challenges?

Rehab budgets have increased with inflation. I plan to budget at least $20,000 for all rehabs moving forward.

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

No