This deal came to us word-of-mouth. Once we got past the variety of potent odors, we recognized a steal of a deal. The house rented out for $1,400 a month, and we took a small $30,000 loan to repay a private loan we borrowed from a business acquaintance.

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

I was interested in this deal because I had never seen such a cheap property in such a nice area of town. Discussing the different ways it could go, I figured the very worst case scenario was breaking even (if there were more problems that I could ever anticipate).

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

My big mouth got me this deal. I tell everyone I meet that I buy investment homes. A friend of my aunt's friend inherited this house and wanted to get rid of it fast, for cash.

How did you finance this deal?

We had $46,000 in liquid cash. We borrowed $25,000 from a business acquaintance. The rehab went mostly on credit cards.

How did you add value to the deal?

We rented 3 20-yard dumpsters to dispose of all the trash in the house. Once stripped to the walls, we painted every surface, with Kilz to seal the odor, which was potent. We completed total rehabs of the kitchen and bathroom, repainted and refinished the remaining flooring, and completed a light finish in the basement. We also replace about 75% of the plumbing as well as a water heater and A/C.

What was the outcome?

We are holding the house and have it rented to tenants who will move in March 15th. We pulled a small $30,000 loan from our local bank to repay the private loan. The rest we're floating on our HELOC and credit cards (ccs at 0% for 18 months).

Lessons learned? Challenges?

Beware dishonest contractors. We took a bath early on from Solid Roofing & Exteriors, a GC who charged for work they never completed. Thankfully, we were able to DIY the rotted siding and facia that they bid to repair but disappeared without fixing. Also, celebrate great contractors. All Star Plumbing, Eloy Jimenez, and Benji Molkzyk all helped with elements of the rehab and their work was beyond amazing. I'd recommend any of them to anyone needing work in Omaha.

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

I have an agent, but didn't work with him on this deal other than a brief phone call to explain why I went it alone. His name is Jay Stahlecker, and he's not on BP, but he is a phenomenal agent.