Getting paid to buy a house from the MLS

[Daniel Tanasa]

Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $110,000

Bought the house of the MLS. The house needed around 30k worth of work and it appraised for 212k after renovation was completed. After I refinanced the house I walked away with 5k in my pocket and $0 left in the deal. Now is rented through section 8 for $2330 a month and it cashflows around $600 a month.

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

This one was listed on the market for 89k. I drove by it right away after it was listed and made them an offer for 100k cash sight unseen. Another investor outbid me so I offered 110k which sealed the deal.

How did you finance this deal?

Bought it with hard money and then refinanced in a long term DSCR loan.

How did you add value to the deal?

The house needed around 30k worth of work and it appraised for 212k after renovation was completed.

What was the outcome?

50k in equity, 5k in my pocket and $600 a month in cashflow.

Lessons learned? Challenges?

Check the attic to make sure there is ductwork and wires for central AC there. There was an additional cost of 3k that we didn't expect because we didn't walk the attic, but that's to be expected for a sight unseen offer. The problem is that I didn't see that until 2 weeks deep in the project. :D

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

I self represented myself in the deal and had a private money lender to finance 100% of purchase and 100% o rehab.