Buy/Rehab - Then Get Paid To Travel!

[Crit Tyson Williams]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $30,000

I snagged this deal shortly after getting pre-approved for a conventional 5% down loan (owner occupied). After about 45 offers to other properties I finally found this one on Zillow of all places! It wouldn't qualify for conventional financing, so I got the seller to agree to allow me to make some slight rehabbing (Yes, before I even owned it!) to get it to qualify. Honestly, it was wild but with the help/guidance of a very knowledgeable local lender I got everything good enough for the green light from the appraiser and we were off to the closing table! After closing I put around 25k-30k and moved into it. Then, I got the idea of renting it out on VRBO for medium term tenants so I can cover all my expenses while I travel elsewhere. This took a lot of minimizing and implementing systems so I can prep the property pretty quickly for a traveler to move in on short notice while I head elsewhere. Consequently, I have only paid two of the mortgage payments out of my own pocket thus far. Sweet taste of financial freedom!

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

This was in a phenomenal location right in the middle of Mcallen. I would be getting it well under market value and would have multiple exit strategies.

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

Surprisingly, I found this deal on Zillow. I was bored on a Sunday afternoon and saw it online, so messaged the seller. We went to take a look at it and I helped the seller realize he would be better off listing with me as his agent for more exposure. He then mentioned he would rather just unload to someone like me who had the investing experience to do it the right way. I reviewed my numbers and gave him my price. We made it a win for each of us!

How did you finance this deal?

Conventional 5% down (Owner Occupied loan)

How did you add value to the deal?

I did roughly a $30k remodel on the interior. I was able to medium term rent it for a premium when I wanted to travel. This paid for all my expenses.

What was the outcome?

I am able to medium term rent it for a premium when I want to travel. This pays for all my expenses and allows me to get a little taste of financial freedom.