4th Deal: Back tax purchase and sold to family.

[Sean Tabor]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $2,800
Cash invested: $7,000
Sale price: $10,000

Bought for back taxes, Rented for $700/mo and sold to family.

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

Didn't want to see this guy lose a house to taxes.

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

Individual was about to lose the house to taxes. I offered to take it off his hands and save him the tax foreclosure.

How did you finance this deal?

Again, Cash... I need to learn my lesson...

How did you add value to the deal?

Minor repairs and updates. Put tenant in place.

What was the outcome?

Sold back to family as it bordered one of their properties.

Lessons learned? Challenges?

This one was my first tenant horror story. The had cats and didn't tend to the litter box, a leaky toilet they never reported, and the list goes on. I did a full tearout of the kitchen ceiling and remediated all the water damage. Got a new tenant in place and sold it. Lesson learned: Do on-site visits as often as possible. Send 7 day pay or vacate notice sooner.