Rent-to-own then flip it at the end of the rental term

[Robert Buscemi]

Investment Info:

other investment in Tallahassee.

Purchase price: $200,000
Cash invested: $8,000
Sale price: $240,000

Rent to own. $3k down, $1500/month. Never acquired the deed. Put new carpet in the rooms, pressure cleaned the exterior, threw stone paneling around the fire place. Basically put a bunch of lipstick on the property. Put it on the market, sold it, my partner and I walked away with just under $20,000 a piece.

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

Didn't need financing.

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

Went into homes that were for sale and pitched renting to us so that they can take advantage of positive cash flow and paying down a few thousand more in principal. All while getting the full ask price for his property.

How did you finance this deal?

Read above

How did you add value to the deal?

The market was appreciating in that area and we saw it was undervalued as is.

What was the outcome?

Successful.

Lessons learned? Challenges?

Don't over improve the property.

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

Jason Madsen, Joe Manausa Realty