Took a chance in a high crime neighborhood

[Sandy Kurtzman]

Investment Info:

Single-family residence buy & hold investment in Fort Worth.

Purchase price: $28,000
Cash invested: $28,000

Tenant-occupied rent house with kitchen renovation, including relocating water heater and washer/dryer to an area called "third bedroom".
The house is located in a central area of town that is known for high crime and drugs, though this particular area seems safe.

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

The price was about the same as a car, I had to go look inside. The neighborhood has boarded-up houses and couches in vacant lots, and I questioned my own sanity but bought it anyway.

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

I saw a For Sale sign and called. They were asking $35000 and I offered $28000 cash. They took my offer and we closed in two weeks.

How did you finance this deal?

Cash from savings.

How did you add value to the deal?

I didn't raise the tenant's rent, but substantially improved her living space.

What was the outcome?

Continuously leased at $650/mo and never had a problem!

Lessons learned? Challenges?

Tell the seller you want to keep the tenant. Get quotes from several plumbers and electricians. I got taken by the plumber!
Look UNDER the house for problems. I had to replace a rotten beam that supported the 3/4 bathroom.