Stumbled upon a great deal.

[Corey Block]

Investment Info:

Single-family residence buy & hold investment in Silsbee.

Purchase price: $54,500
Cash invested: $6,400

Single family home on 5 acres

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

I love these cheap homes in this area. Rents are good and tenants are not hard to find. Plus I got the property at a great price, I knew it was worth much more than I bought it for.

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

I found this deal through a local investor that I have become friends with, it was one of his dad's investment properties. He was originally asking $54,500 for the house and 1 acre of land. I negotiated an additional 4 acres of land in with the deal and purchased it all for $54,500.

How did you finance this deal?

Owner finance at first just to obtain the property quickly, then did a cash out refi with a local bank. The property appraised for $135,000.

What was the outcome?

Purchased the home by owner finance and put a tenant in it within a few days. Closed on the cash out refi a month later and put over $54,000 in my pocket and the property still cash flows. I took the money and bought more property!

Lessons learned? Challenges?

Networking is key. Make friends with local investors.

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

I am a licensed real estate agent.