Great cash on cash investment

[Adam Boyd]

Investment Info:

Mobile home buy & hold investment.

Purchase price: $32,000
Cash invested: $7,500

Long term buy and hold property with a great cash on cash return.

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

The opportunity presented itself.

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

This property was purchased as a contract deal from the seller. This property was going into foreclosure and the seller was actually in jail. I contacted the seller and made arrangements to bond him out of jail with the proceeds from the purchase of the property. I paid the remainder of the amount owed on the contract. Bonded the seller out of jail and he pocketed about $7k.

How did you finance this deal?

Cash

How did you add value to the deal?

I removed the carpet and installed Pergo. I also fixed anything broken in the property and got both garage doors working.

What was the outcome?

I currently have it leased out for $1025.

Lessons learned? Challenges?

Always save reserves when the opportunity arises.

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

I am a realtor but my father is the hero in this deal. He negotiated with the seller and did all the paperwork.