Property #5 (Buy and Hold)

[Andrea Castor]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $83,600
Cash invested: $30,000

3 bedroom, 1.5 bathroom brick ranch 1201 sq ft

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

Our first time buying at county auction.

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

Property was offered at our county auction the Monday before Christmas. It was the only property being auctioned that day so only one other bidder.

How did you finance this deal?

Cash

How did you add value to the deal?

Complete gut including adding air conditioning

What was the outcome?

BRRR, pulled out $114,000 @ 4.125% for 30 yrs. (Pulling out 100% of funds, leaving $56k equity). Renting for $1400/mo.

Lessons learned? Challenges?

We had never purchased at auction before so lots of lessons learned with how to bid, how to deal with moving current owner out, etc.

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

No