I am just starting as an investor and I bought a foreclosure for $7,500.00 that no one would touch w/arv $48,000.00 because the basement was full of water. I bought it, put in a sump pump, and put in $750.00 of sheet rock and sold it for $25,000.00 on Ebay. I got $10,000.00 down and I get $454.00 a month for 3 years. Looking for another deal like that.
I bought a REO in February for $50,000.00 that has tax value of $79,000.00 and am renting it out too cheap; $600.00. I plan to hold it for two years and probably sell owner finance.
I am renting out a house that I bought for $10,000.00 for $450.00 month. I paid for this over 3 years so it is paid for but needs carpet and paint. It was my grandmother's who had lifetime rights and she just died 2 months ago.
I just bought another foreclosure in May and I had to put up the deed for the house I bought for $10,000.00 that has a tax value of $49,000.00 with 3 acres of land to get the loan with no money down. The bank says in 2 years I could have the deed back. My payments are $437.00 month and I gave $53,000.00 for it. I am owner financing this house to a couple with $10,000.00 down and $59,900.00 balance to be paid in 20 years or a 5 year balloon payment. I got a land contract on house and 1 acre and have it fixed where if they don't pay me I won't have to foreclose; it will be signed back over to me. I feel iffy about the couple already.
I am currently looking for a deal to make $15,000.00, like I did on my first deal, but I haven't made many offers. I feel like I can deal better with foreclosures as they really want to get rid of them, and with “for sale by owner” they don't, alot of times, HAVE to discount price.