Bank foreclosure property 3rd house hack.

[David Paul Westenberger]

Investment Info:

Single-family residence buy & hold investment in Round Rock.

Purchase price: $270,000
Cash invested: $30,000

3rd house hack

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

The numbers, cash flows in a negative cash flowing market area.

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

MLS, bid over asking, no negotiation, was banked owned, was underpriced to begin with.
Had to wave inspection and appraisal.

How did you finance this deal?

30 year fixed conventional primary residence.

How did you add value to the deal?

I will replace all flooring with LVP, add a wall + closet to create additional room where the dining room is located for a total of 6 bedrooms. repaint all walls.

What was the outcome?

ARV of other 5 bedroom homes in same neighborhood are around 330k, so I can HELOC to get 30k-40k, and get cash flow once its all rented.

Lessons learned? Challenges?

When dealing with HUD properties and they winterize the property, get a plumber out there on day one to de-winterize, and to check for leaks from water heater, and get a roofer out there to check the quality of the roof for leaks. Also replace all air filters on day 1, they probably filthy.

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

redfin.

[David Paul Westenberger]

Originally posted by @Marlen Weber:

Congratulations on this house hack, @David Paul Westenberger

 Thank you!