Creepy clown house turned into nice BRRRR

[Jordan Northrup]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $29,000
Cash invested: $12,000

Found this house in a poorer are of my hometown. They wanted $50,000 for it. It's a 900sqft place. The owner had hundreds of creepy clowns of various sizes all over the yard and inside the property. Walls were this ugly fire red and flat black. The upstairs was an old unfinished attic.

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

Zillow and my property manager.

How did you finance this deal?

Paid cash

How did you add value to the deal?

Most people would see a loser but I saw opportunity, I offered the guy $28,000 cash on the spot. We ended up settling on $29k and him clearing away his clowns. Then I had the trades come in and fix the attic. They wired it as a bedroom, put up insulation and drywall, painted it, and refinished the original hardwood floor.

The downstairs got a complete cosmetic makeover.

What was the outcome?

Awesome property. It's renting for $900 a month and tenants love it.