Terrible situation that ended up great

[Daniel Tanasa]

Investment Info:

Single-family residence buy & hold investment in Katy.

Purchase price: $160,000
Cash invested: $8,000

This property was bought for 160k from a wholeseller. I got it with a hard money loan that gave me 160k to purchase the house and 20k for the rehab. The appraisal came in at 242k, so I only needed to came up with the closing costs. The Hard money lender gave me 75% of 242k which is a bit over 180k, my purchase price and my rehab cost.
After rehab I rented it for $2200 and is cashflowing about $300/month.

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

There was a funny story when we went to see the house. There were 5 investors in front of the house when I got there, all trying to see and buy the house. When the wholeseller finally gave us the green light to go in we all started to walk the property. When we got in the living area, there was a fire in the fireplace and someone was sleeping in front of it. It was a real mess inside. All the furniture was directly on the slab, all carpet was taken out and a lot of trash all around.

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

I walk to the back of the house and then to one of the bedrooms. Then I hear the person that was sleeping in the living room screaming and swearing, "WTF are you doing in my house, get the F**k out, I will shoot you!". Hearing that we all got out as soon as possible. Seems like that was the seller's boyfriend and he didn't know about the showing that was schedule for that day . Anyway, that being the case, we didn't have time to look around much.

How did you finance this deal?

The asking price was 170k and since I didn't see much I offered 160k, knowing that most likely I won't get it bellow asking.
But seems like everybody got scared of the house and of the situation and none placed an offer. And I got it for 10k less than I was planning to pay for it when I went for the showing.
I attached bellow some before and after photos.

What was the outcome?

Moral of the story. From any bad situation can result a great outcome.

Go out there and make deals happen.