Second real estate deal

[Timothy Summers]

Investment Info:

Single-family residence buy & hold investment in Port Lavaca.

Purchase price: $90,000

2br 1ba fully renovated at time of purchase

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

There is a local plant that signed a long term expansion contract

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

This deal was for sale by owner, I called him, walked the property the next day. We made a cash offer 7500 under asking with no contingencies, with a quick close and they accepted

How did you finance this deal?

We bought this house with cash and later did a cash out refinance.

How did you add value to the deal?

We spent less than $100 fixing up small things here and there, other than that we bought the house at 90K and it appraised at 120k at refinance.

What was the outcome?

Listed for 2 days and rented at $1700/mo to 3 contract workers. They were here 6 months, left the house in great condition, we put it back on the market and had it rented in 2 days again.

Lessons learned? Challenges?

Buying the house undervalue already renovated is much easier then spending 4 months rehabbing with a full time job.