Hoarder House Rental

[Matt Lodwick]

Investment Info:

Single-family residence buy & hold investment in Milwaukee.

Purchase price: $8,000
Cash invested: $25,000

I was on a missions trip to Tanzania and when I got back I had two voicemails from the seller. He had gotten a postcard [Deal Machine App] from my driving for dollars and was extremely motivated. The house hadn't been maintained very well and it was a hoarder house. I offered him $8,000 for the house and he accepted. Originally, I was planning to wholesale it but due to all the junk, it was hard for buyers to visualize it in good condition. I ended up closing on it myself November 5th and it took 3 dumpsters to remove all the junk. I did a full rehab on the house by myself which cost me about $15,000. Then, a tenant moved in December 1st at $1,200/mo for rent and $100/mo for water. Over all, this deal was so much fun to do. It was really cool to see the seller able to move to Florida to be with his son and just the whole process. I'm really excited to take on more projects! This one turned out to be so smooth. Not bad for my first rehab I'd say!

How did you finance this deal?

Financed $8,000 and the rest was cash.

How did you add value to the deal?

Redid the entire kitchen & bathroom as well as painted the entire interior. Tons more stuff done.