Inheriting a value add.

[Samuel Albert]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $55,000

Inherited the property from my dad and bought my brother's half from him. Needed a new roof, new hvac, basement had water damage and flooding issues, new floors, kitchen had a soft spot from a water pipe leak. Overall I had to put an extra 20k. Ended up refinancing and pulling out about 125k that I used to buy my next property.

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

I had been managing the property for my father for years, so it seemed like a no brainer.

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

Inherited the property and negotiated with my brother to buy his half. He knew how much work it needed so we came to a reasonable agreement.

How did you finance this deal?

Used money I had in savings.

How did you add value to the deal?

New roof, hvac system, floors, drainage and vapor barriers in the basement, and painted the walls.