My only single family rental unit

[Patrick Davis]

Investment Info:

Single-family residence buy & hold investment in Lancaster.

Purchase price: $32,000
Cash invested: $20,000

This one was purchased for my father in law.

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

I knew how much the owner owed and that they were on the verge of foreclosure, so we offered the amount owed and were able to steal this one that has more than tripled in value.

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

We found it on the MLS and went in with the intentions of doing a lot of work to get it up to par. It turned out to be less work than anticipated

How did you finance this deal?

This was a cash deal.

How did you add value to the deal?

We did some minor structural work, flooring, paint, drywall, new bathroom, new kitchen cabinets.

What was the outcome?

This house was purchased way under market value and is now valued more than triple the purchase price

Lessons learned? Challenges?

I learned not to pay the contractor up front for the work. We waited forever for him to finish and he ended up not doing all that was negotiated.

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

Todd danni. He’s awesome!