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Updated over 3 years ago, 05/11/2021
Bad Flip to Great Buy and Hold
Investment Info:
Single-family residence buy & hold investment in Colorado Springs.
Purchase price: $324,000
Pandemic Special! This house was recently flipped and some major things were ignored. The sellers were distressed due to ongoing issues and they wanted out. We were fortunate enough to use a lot of equity that we had in our primary residence to help us make this purchase in cash since bank financing was most likely off the table with the issues. Knowing what was wrong going into the deal actually made it much easier to know what costs were going to be. This has been a great rental in the best school district and a great neighborhood.
What made you interested in investing in this type of deal?
It had distressed sellers, had major issues that prevented buyers with loans from bidding.
How did you find this deal and how did you negotiate it?
MLS, cash, and quick close waive the inspection objection due to known issues.
How did you finance this deal?
Through tapped equity and some private capital
How did you add value to the deal?
The property was 98% complete and done fairly well. There were previous issues that were ignored that needed addressed.
What was the outcome?
High rents due to demand, location, and school district. It currently rents for $3000/mo
Lessons learned? Challenges?
Take on other people's problems they do not want to solve.