Rehabbed Foreclosure Condo

[Candice Kenney]

Investment Info:

Condo buy & hold investment.

Purchase price: $100,000
Cash invested: $25,000

FannieMae Homepath Foreclosure. 2/2 New Kitchen, Master Bath, New AC, New Furnace.

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

It was my first home and the 3% down with the optional renovation mortgage couldn't be beat. It was clearly under market so there was a slight bidding war for it. I originally viewed it as a fix and flip, but fell in love it with and lived it in a number of years. As a 2/2, I was able to rent out the extra bad/bath from time to time, and have had my current tenants coming up on two years.

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

It was a time when Chicago was full of foreclosures, so I found it on www.homepath.com

How did you finance this deal?

HomePathy Ready Buyer Finance

How did you add value to the deal?

Restored and improved the missing master bath and completely gutted the kitchen. I also installed wood floors in the bedrooms.

What was the outcome?

The property value has tripled since I purchased it and the rental cashflow is excellent.