Personal purchase turned investment

[Lindsey Brewer]

Investment Info:

Townhouse buy & hold investment in Phoenix.

Purchase price: $29,900
Cash invested: $10,000

I bought this townhome originally to live in myself. It needed significant cosmetic rehab, the structure was in good shape. After a few years I moved across the country to Chicago and have been renting it out ever since.

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

This was a necessity - I needed a place to live. I didn't really go into it with investment in mind, but it worked out that way for me and has been a veritable cash-cow.

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

Driving through the neighborhood. It was 2011 - the market was blowing up with investors due to crazy low prices. I just kept driving through the 1 neighborhood that I had identified as ideal for my situation and found the house about 10 minutes after the realtor had put the notice on the window. It was a Fannie Mae foreclosure, so offered asking and had the advantage of being an owner occupant.

How did you finance this deal?

Cash - but borrowed from family & repaid them.

How did you add value to the deal?

Made cosmetic improvements & added an enclosed garage - which is a huge deal in AZ.

What was the outcome?

12 years later, own the house outright, taxes are low & rent is $1575/mo