SFH 3bed/1bath Ranch House

[Kesete Thompkins]

Investment Info:

Single-family residence buy & hold investment in Pittsburgh.

Purchase price: $70,000
Cash invested: $23,000

Ranch-style SFH 3bed/1 bath house on the Northside of Pittsburgh
Attached Garage, front and back yard

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

The house belonged to my aunt and she was going to let the house go for the taxes.

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

I lost a deal up the block and I was frustrated. I wanted something in that area and then I thought of my aunt's house. I contacted my aunt and she told me her plan to let the house go for taxes. She was using it as a rental, but it was vacant for two years. I remembered the condition of the house and prayed that it wasn't in horrible shape. I asked her to come up with a number that she'd sell it for and we quickly agreed to a seller financing deal.

How did you finance this deal?

Seller finance deal. 10% percent down, deal financed with 0% interest over five years.

How did you add value to the deal?

We renovated the house, upgrading the bathroom, the kitchen, and the front porch.

What was the outcome?

We are currently renting out the house at a price that's slightly under market rent.

Lessons learned? Challenges?

1. Patience is key. A lack of patience will cost you money.
2. Know what you want before you bring contractors in. They will upset you on what to do if you aren't careful.
3. GET A RECEIPT FOR EVERYTHING!
4. Get concrete quotes and a clear itemized scope of work from your contractor. If possible, get a price breakdown for each project on the job.
5. Make sure your contractor can show you examples of his/her work.