Buying in a warzone at a great price

[Jason Arcuri]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $25,000
Cash invested: $5,000
Sale price: $96,000

Single tiny crappy house that I bought to rent out

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

The numbers looked great.

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

Client of mine wanted to offload it due to crappy tenants.

How did you finance this deal?

She financed 20k out of the 25k with zero percent interest.

How did you add value to the deal?

Kicked the tenant out and updated the building

What was the outcome?

ended up getting numerous bad tenants and sold after a few years for a good profit.

Lessons learned? Challenges?

Will buy in any area but the numbers really have to be extraordinary to make up for the worse areas.