Anchor Deal - That one that just gets you in the game...

[Makenna Ryan]

Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $250,000
Cash invested: $80,000

1950's Ranch on 1/3 acre lot in Houston. Previous owner fell ill and the house was untouched for 3 years.

First Deal. Current Living in the remodel. Expect to cash flow $100/month when it's rented. Area is in transition, significant spike is property value is possible.

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

I bought a house to get out of renting, and just get started in the real estate space. I bought the absolute worst place I could convince my wife to live in. Purchased with intention of renting but did not have a really thorough grasp of the numbers at time of purchase. I do know homes and home remodeling, so I bet on myself to get the house brought up to above average in the neighborhood for less than the average asking price in the same area. Seems to be working so far. Time will tell. :)

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

MLS

How did you finance this deal?

Conventional

How did you add value to the deal?

Full gut, down to the studs. Full exterior face lift. Blood, sweat, no tears yet.

What was the outcome?

TBD, could currently rent at $100 positive cash flow once I get out of it. I could sell at approx $35k net profit.