I acquired this property using a 'subject-to' (sub2) purchase and rented it out for a year. Due to the impact of Covid, I couldn't sell it immediately, so I opted for Airbnb. A year later, I sold it at a modest profit. While the experience was enriching, I invested a lot of time and earned relatively little in return. Nonetheless, I'm proud of the outcome. It was my inaugural project involving the hiring of local contractors.

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

After completing online courses about 'subject-to' (sub2) and various unconventional methods of buying and selling properties, I needed hands-on experience. I acquired this deal from my mentor who already had it under contract. He certainly made more money on this transaction than I did, but I gained invaluable experience. I also did all process of buying this property by myself without a title company. I registered a company in Alaska and registered a warranty deed I drafted before.

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

I did negotiate a little. I purchased it from my RE mentor.

How did you finance this deal?

Cash out of pocket

How did you add value to the deal?

New floor, staining, painting, new deck etc.

What was the outcome?

Just 5-10k of profit but I am happy I did not lose money as it was a tricky deal.

Lessons learned? Challenges?

Never pay by hour. Always pay by piece.
I were hiring many people and there were doing a milky job. I could save 5-10k if find a professional and pay for a project in one piece.

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

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The first remodeling experience with sub2 in Alaska

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