Investment Info:

Single-family residence buy & hold investment in Sauk Village.

Purchase price: $42,000
Cash invested: $15,000

I bought this on a seller finance deal. The rent is $1100 per month and I pay the seller $450 a month. That includes taxes and insurance. So after paying for PM, maintenance and vacancy, I net about $500 per month.

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

The property was way undervalued and the cash flow was very high. The seller was willing to finance the deal, so of course I took him up on it! The house is worth over $69k and it appreciating rapidly.

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

I found the seller through a private party.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

The seller was a tired landlord and didn't want to keep the property. Over the years, he made a large profit and just wanted to retire.

Lessons learned? Challenges?

I tell investors that seller financing is the way to go, if you can find the deals. Let's say I had $60k cash. I basically could have purchased 1 home for around $60k or I could finance 4 of them. So for the same amount of cash, I own 4 properties, rather than one! It's a win win situation for everyone.