Repurposed 1935 Craftsman Home

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Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $25,000
Cash invested: $30,000

Moved a pier and beam Houston Heights home to the East End and turned it into a rental.

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

I had several vacant lots that I couldn't build on because the bottom fell out of the market in 2008. I wanted to have some cash flow.

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

I found the deal through a house moving company. All the setup incl. permits were included with the exception of the plumbing, sewer, electrical upgrade and HVAC reconnect. It was all cash no financing.

How did you finance this deal?

Cash followed by a 30 year fixed once the property was completed and cash flowing

How did you add value to the deal?

By using an existing home I saved months on construction labor. Within 6 months I was cash flowing.

What was the outcome?

I did 3 more of these deals and still hold 3 of them for cash flow.

Lessons learned? Challenges?

Pick your tenants well so you don't have to do make ready too often. My average tenant is around 5 - 7 years now.

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

Private money lender - sorry he recently passed away.