Abandoned house with Past due taxes, city liens, and late fees

[Mary Fraga-Kingsbury]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $43,000

This was my first deal. Bought the property for Past due taxes and liens + a $15,000 note to the seller (great terms). Renovation costs of $30,000. SF 3/2 home. Good renters just completed 3 years.

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

There was not much competition for this type of property: abandoned and tax delinquent. Owner was VERY hard to find and did not return calls or respond to email and regular mail.

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

I found this property by Driving for dollars. I used the internet and other resources to locate the owner and contact him. Took many calls to get him to respond. I was persistent in calling and texting. He was better at texting.

How did you finance this deal?

I financed this deal with cash and a note with the owner.

How did you add value to the deal?

I emptied the house completely. I held garage sales to help generate income and to remove all the furniture and stuff from the house. I also contacted antique dealers to increase the income on some of the furniture.

What was the outcome?

The home is now an income producing rental. I have minimal debt on the property. A small personal loan to rehab and the owner financed note. My total monthly loan payment is $400/mo.