$10K Cash Out Rehabbing a Junker

I’m really new at this site, but I do want to share a success story with others. “You never know.”

Two years ago while an agent was telling me about property that I might like to buy, he told me about a house in a neighboring community that had been vacant and on the market for a year. This was a two-bedroom, one-bath home that needed a roof, paint, stove, cabinets, floor coverings, and junk hauled off.

Fixed up, it was worth $50K to $55K. They started out asking $45K, and when I saw it the price was down to $39K. It was a mess. I almost passed on it when I asked how many offers they had on the property in the last year. I offered $15K and would pay all the costs and close within a week.

They took the offer. I closed for just under $17K and sank $13K in it. I put a loan on the property and pulled out over $10K and have a tenant (lease option) whose rent covers the PITI. If he buys the property, I’ll make a little more. If not, oh well.

By CREOnline Contributor

A content contributor to the original CREOnline.com.