Code Violation Investment Property Turned Rental

[Andrew Brei]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $140,000
Cash invested: $17,000

Property with code violations that after negotiations turned into a great investment property.

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

We were looking to expand our rental portfolio.

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

Found on Zillow and had to re-negotiate the deal after finding out about the code violations. We were able the use the code violations as leverage to really reduce the price....they were asking $170,000 initially and we bought for $140,000

How did you finance this deal?

Paid cash

How did you add value to the deal?

Cleared code violations and took care of a leaky roof.

What was the outcome?

Code violations are taken care of and currently just signed tenants to a year lease!!

Lessons learned? Challenges?

Chimney was capped when they re-roofed the house so we had to switch the gas water heater to an electric water heater. Also when we purchased the property the sewer was backing up in the basement only to find out that the sewage ejector pump was not plugged in to get rid of the waste/water. I had no idea what a sewage ejector pump even was and after awhile it was tripping the new GFCI so I got to learn how to replace one!!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Investor friendly agent - Stephanie Brei