First house bought with intention of investment

[Aaron Haynes]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000
Cash invested: $137,000

I found this foreclosure and an investor to help purchase it. The house needed a ton of work which I helped do and managed the rehab for another $12,000. Home currently has a value of $230,00 on Zillow.

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

I had some time and some knowledge.

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

I found this foreclosure online and found an investor who could make an all-cash offer.

How did you finance this deal?

Private investor

How did you add value to the deal?

I found the deal. I then was the driver of getting the place from foreclosure to rented out in less than 3 months.

What was the outcome?

I still have this house. It appraises for much more than we put in. It cash flows and hasn't ever been vacant for more than 5 days since we put it up for rent.

Lessons learned? Challenges?

I learned how difficult the process of being a project manager can be as far as timing contractors, laborers, utilities, and all of the work that needed to be done. It was foreclosed for 2 years. The doors had all been kicked in at one point or another. There was spray paint on the walls, no appliances, holes in walls where copper piping was taken. I got it from that to ready to rent for $12,000 + my labor in 3 months.