Investment Info:

Single-family residence buy & hold investment.

Purchase price: $135,000
Cash invested: $145,000

Bought a single, detached home in Aston with 3 beds, 1 bath for $135k. House is probably worth around $260k. This deal worked because I helped a distressed homeowner stay in their home. I bought the house at a discount, stopped the foreclosure, and agreed to rent it back to them for two years at a lower than market rent. I have to do about $20k in work to the house, ($7.5k in sidewalks!) but no big deal with the huge equity gain.

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

I wanted to help the people, and the numbers all lined up to make it happen

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

This came to me as a listing lead that was looking to sell their home because of financial distress.

How did you finance this deal?

I used some cash on hand and a HELOC. I will refinance the deal if a few months after making some repairs.

How did you add value to the deal?

I created the solution to someone else's problem

What was the outcome?

I plan to buy and hold the property for as long as possible. So far, about $100k equity gain upon signing the paperwork.

Lessons learned? Challenges?

I am sure I will have challenges to come.

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

I am a Realtor, so represented myself.