Single Family with foundation issues

[David Weskamp]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $75,000

Single Family home. The house was under contract and fell though due to foundation issues. Many interested parties, but could not be purchased with loan due to foundation issues. Foundation was shored up and plan is to repair in spring. House is solid but will require permanent repair before selling with traditional loan. The house is also zoned residential and commercial, so a shop could be built and business run out of the house. The house also has water rights which adds value

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

This property was under contract at much higher price and fell through due to minor foundation issues. Required cash deal. This will rent well and plan to repair foundation in spring. Depending on if I find a solid long term rental, I might flip.

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

When the house price dropped due to foundation issues and bank would not loan on it. Did some research and spoke with the contractor on cost estimates for foundation work, it still penciled out very well.

How did you finance this deal?

Cash

How did you add value to the deal?

Foundation work will be completed in the spring.

What was the outcome?

Keep you posted

Lessons learned? Challenges?

Keep you posted

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

Yes on real estate agent and contractor for foundation estimate