History of an REO in Houston, TX

[Rebecca Rodriguez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $30,000
Sale price: $109,000

Purchased this REO that was a hidden gem on a corner lot. First renters stayed the entire time; didn't want to buy so they moved on and I got it ready to sell. This was a great experience.

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

Inexpensive investment - great starter home.

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

Scouring the MLS. Since it was an REO and well priced , I didn't negotiate price.

How did you finance this deal?

Cash!

How did you add value to the deal?

cosmetic mianly, I also added insulation, upgraded the windows.

What was the outcome?

More than tripled the investment and that is not even counting all the rent money received during those six years.

Lessons learned? Challenges?

If you suspect renters are taking good care of your house - follow your gut. My tenants lived in my house for six years and 98% of the time paid like clockwork. When they started getting behind I did a site visit and told them flat out, that they were taking care of my house. I put them on a plan and followed up with them. It still ended up that I asked them to leave, but their rent payments paid for the house many times over.

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

n/a