Investment Info:
Single-family residence buy & hold investment in Avondale.
Purchase price: $142,000
Cash invested: $85,400
Sale price: $236,000
This purchase was made as a bank owned property. We lived in it for a few years, made some small repairs and maintenance. We then sold this home in late 2016 for an amazing ROI of 57%.
What made you interested in investing in this type of deal?
It was interesting because of the potential return that I knew would eventually happen when the market cycled up again. Property research showed that the original owner was in 2 loans for a total of approximately 340K. I knew that even if the market did not make a full return to what it was prior to the crash, it would still net a huge return later
How did you find this deal and how did you negotiate it?
This was a bank financed unit with my own credit and a total of $85,400 out of pocket over 6 years. I found this deal through a realtor at the low point of the market. The original price was $146,900 and I was able to negotiate down to $142k after a tour of the home. At that time, it was clearly a buyers market.
How did you finance this deal?
Regular bank financing/ First time home buyer incentives
How did you add value to the deal?
upgraded the interior, repaired the pool and repainted
Lessons learned? Challenges?
I would have leveraged 3-5 properties at that time.
