Bought a distressed home in a high profit cashflow area.

[Zack Matteson]

Investment Info:

Single-family residence private money loan investment.

Purchase price: $217,000
Cash invested: $50,000

I'm a contractor and bought this property in a very distressed state. I personally lived in it and fixed it up while working my W-2 job. Found out it had an ADU on the property with utility hookups. I fixed that up and now rent both units.

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

I listened to podcasts and read books on fixing and renting property.

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

I found this deal through my real estate agent. There was a lot wrong with this property and we managed to negotiate the deal from $230,000 to $217,000

How did you finance this deal?

Private money.

How did you add value to the deal?

I'm a contractor, so I gutted and remodeled almost everything in the house.

What was the outcome?

It cash flows about $1,000 a month.

Lessons learned? Challenges?

Just following the steps in the brrrr method got me this deal.

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

I worked with a local agent Sue Washinger. Who I now mentor under as a new agent.