Emerson

No. 03 – Our Second All Cash Purchase! (Emerson)

Purchase Date: 7/14

The Deal:

We found this house from an investor and bought it for cash for $20,000. A year or so later my insurance was canceled due to missing siding on the back of the house, the property manager said it needed $10,000 worth of repairs, so I resold the house on a land contract. The new investor paid me $35,000 for it, $3,500 down, and $300 a month for 15 years. I don’t pay any repairs, taxes, insurance, etc, and the investor took it as is. In 8 years the buyer has paid late one time, and I have never gotten a call. At the end of the contract, I will have made over $23,000 just in interest on the deal.

How Did We Find The Property?

We were looking to make another investment purchase and I reached out to the investors I knew. One of them had a sheet of properties that he was willing to sell, this one was the only one I could afford.

How Did We Fund The Property?

The investor was looking fo4 $20,000. At the time I had $15,000, but we also had another paid-off rental property. The investor agreed to take the remaining $5,000 on payments and I paid him off in 6 months or less.

How Did We Fix The Property?

We didn’t do a single thing to this property. The tenants that were living there agreed to work on the property in exchange for a discount on rent. They took the house in not-so-good condition and left it in not-so-good condition. When they moved out, the property manager said it needed $10,000 in repairs!!!

Rent at Purchase: $475

Current Rent: $305