Single family package deal

[Cody Smith]

Investment Info:

Single-family residence buy & hold investment in York.

Purchase price: $35,000
Cash invested: $3,200

Single family home I bought as a package deal with another property. I bought both homes for $35,000 with a line of credit. I cleaned up the "junk" property and sold it for $10,000. I now have the good property that is rented and cash flowing approx $500 per month.

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

I liked the idea of flipping 1 property with little to no work and applying that $10k to purchase of the good property.

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

I work with many investors in and around the York area. This deal was presented to multiple buyers who are heavily invested in this area. I was the first person to get the properties under contract contingent on getting a quote for flipping the junk property. If the quote was too high I could walk away from the deal. I knew i was going to do a quick flip with this property and sell it to another investor with doing little to no work.

How did you finance this deal?

Line of credit

How did you add value to the deal?

cleaned out the junk property to make it more appealing to the next investor

What was the outcome?

bought 2 properties and sold 1. Took the proceeds from the junk property and applied to the line of credit to free up my cash.

Lessons learned? Challenges?

Lessons learned - the smallest steps add up to the biggest leaps
Challenges - convincing myself to go for it. I'm glad I took the chance

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

I was the real estate professional and yes I would recommend myself ;)