Hoarder home to rental

[Kristy Sue Haines]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,000
Cash invested: $6,000

Two story single family home. 4 bedrooms, 2 bath, in Ottumwa Iowa. Needs TLC

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

It seemed like a great opportunity to start investing in real estate.

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

While running our Handyman company an old school friend of my husband’s reached out to us. She turned out to be one of my associates from my years volunteering for Boy Scouts. We cleaned out the house for her and helped her move to another state. She signed over the deed in lieu of payment.

How did you finance this deal?

Trade for services

How did you add value to the deal?

We are making repairs.

What was the outcome?

Still working on it but have a renter

Lessons learned? Challenges?

We were not educated in the work and financial planning for such an undertaking. We are looking for ways to improve and do better next time. I had to take full time work in another city from my family. We are now hiring contractors as we seek ways to secure reliable professionals. My husband a disabled veteran has also started working outside the home.

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

No