Still finding deals in a hot market

[Aaron Rowzee]

Investment Info:

Single-family residence buy & hold investment in Orange.

Purchase price: $55,000
Cash invested: $15,000

Good rental in a solid rental area, with plenty of equity and cashflow. I helped an old individual out of a housing situation where they physically were unable to finish the rehab.

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

The fact that this listing was older than 60 days and had dropped about $10k from the original asking price. When I first walked the home, I saw that the owner had wasted 2 weeks "rehabbing" the home by scrapping the popcorn off of the ceiling, when his focus should have been on pulling up terrible, stained carpets among 50 other things. It was clear to me that the seller had no idea what he was doing.

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

FSBO on Zillow over 60 days old. I offered cash, a quick close, and my willingness to take the home as-is with no cleanup from the owner for roughly $14k less than his asking price. He took it and ran.

How did you finance this deal?

Cash from my line of credit.

How did you add value to the deal?

Expecting to rent it for $1,250/mo and have approximately $70k total in it after rehab and refinance. With an ARV of $100-105k I'm looking at $30-35k in equity, a LTV of 70% and a RTV of 1.78%.

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

Yes, myself. I would totally recommend myself to others.