Bounce back from divorce

[Claude Trotter]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $40,000

This was my 1st investment after a divorce. This was a foreclosure that I was able to acquire as an owner occupied loan for less than 4k at closing. Minor rehab with replacing a water heater and fresh paint. I moved in and rented out a room to help cover expenses.

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

Timing and price. Always in a market for fixer upper at a great price and low down payment.

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

I worked with a real estate agent the specialized in foreclosures.

How did you finance this deal?

Owner occupied FHA

How did you add value to the deal?

Replaced water heater, made minor repairs and a fresh coat of paint.

What was the outcome?

Still have it as a great rental property in my portfolio. I have refinanced and used the funds to grow my real estate portfolio.

Lessons learned? Challenges?

Learn the laws of property management if you choose to manage your own. Got fined because I didn't follow the laws correctly when dealing with juvenile delinquents that wanted to use my property as club house when they skipped school. I had a fine to pay, they had to find a new place to live.