Assumptions are great!

[Owen Hopper]

Investment Info:

Single-family residence buy & hold investment.

Cash invested: $20,000

This was an assumption. Someone needed to get rid of the property so I assumed the loan. They even paid closing costs. I only spent $20,000.00 to rehab the kitchen. He had this home for 5 years he was paying off the mortgage, now after two tenants that I have put though here, I owe around $177,000 the house is valued at $255,000-$260,000 I should make a good profit off this, but I am going to do a 1031 exchange to trade this up.

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

It was basically a free house he even paid the closing costs.

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

Someone needed to get out of a house they could not afford I made it happen so he would not have to foreclose.

How did you finance this deal?

Assumption

How did you add value to the deal?

I upgraded the kitchen that was 20K.

What was the outcome?

Everything has been great I have had two tenants in there and a 3rd is there now. I am going to put it on market soon and do a 1031 exchange for a bigger commercial property.

Lessons learned? Challenges?

Yes I tried to flip this, but I found out house flipping is not for me. I much rather have tenants.

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

None