20K investment, with 200k in equity and Airport Share

[Kevin Dares]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $20,000

Single Family Rental Property with Share of private airport and opportunity through expansion with addition of 6+ plex.

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

Low cash needed to invest
High Cash Flow
Share of Airport
Potential for expansion with multi family capability and zoning

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

Through EastSide Funding and Vestus, the PNW leader in the foreclosure market. We at NXNW partner with Vestus for all rental rate capability calculations in the Washington market.

How did you finance this deal?

Initially through a hard money loan but refinanced upon completion of renovation with Cornerstone Lending.

How did you add value to the deal?

Through basic upgrades, fresh paint, new flooring and general prep of property and structure exterior.

What was the outcome?

With a $20,000 investment we acquired a property for the price of $150,000 that is worth $350,000 in the current market. On top of the instantaneous 200k in equity, we cash flow as a rental at $500 monthly, have a share in the private airport that the home is part of and have to opportunity to split the lot and develop a tri-plex on each new lot.

Lessons learned? Challenges?

The foreclosure market presents a lot of challenges. Chief among them the possibility that you will need to deal with tenants/owners that reside on the property at the time of your purchase. It is important to understand the legalities in what you can and can not do in terms of eviction and the form that the process takes.

I always recommend to kill them with kindness. No matter the challenges you face, an individual that likes you and can relate will always be easier to work with.

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

Chris Nelson - Vestus and East Side Funding
Tim Lombardo - Cornerstone Home Lending