potential cashflow property

[Phillip Ross]

Investment Info:

Single-family residence buy & hold investment in Seattle.

Purchase price: $20,000
Cash invested: $5,000

Purchased distressed fixer. Still have about 50k in upgrades, but in a great rental area. Plan is upgrade,and hold as a BRRR.

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

Cash out of pocket was minimal, ROI potential is tremendous.

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

A friend was behind on taxes on home he inherited from uncle, asked if I would consider partneringat a steal of a buy-in, basically paying back taxes.

How did you finance this deal?

I used personal cash, will use hard money to obtain rehab funds.

How did you add value to the deal?

I had cash on hand, plus ability, know how and existing relationships to obtain needed financing.

What was the outcome?

We are still in process of solidifying hard money financing to rehab...some minor title issues to cleanup.

Lessons learned? Challenges?

Sone title issues to cleanup...pull title to review prior to committing too many funds, in this case the upside makes it worth it, but I can see how it could've been a potential trainwreck if I had committed more upfront money into this deal.

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

Worked with a couple hard money lenders, title company, and real estate attorneys.