Inherited a major distressed property

[Cole Shafer]

Investment Info:

Single-family residence buy & hold investment.

Cash invested: $18,000

My dad inherited this house from his mom when she passed away, the house is in terrible condition. He had no money to fix it up and it was just sitting there costing him money (property tax). Once I started listening to the BP Podcast I decided to fix it up for him and rent it out. We split the $1,000 a month rent it brings in.

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

The podcast and cashflowing

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

I told him the plan and how I could provide value.

How did you finance this deal?

By working at ups.

How did you add value to the deal?

I found a contractor and funded everything. As well as found renters, and I take care of the rent each month.

What was the outcome?

The house is paid off, so there is no mortgage. Instead of my dad losing $1,500 a year in property tax with no renters, I found a solution so we could both make money and increased his total property equity fixing it up.

Lessons learned? Challenges?

Finding a good contractor, finding good tenants, explaining the value of rent cashflow instead of selling the whole house for below market value.