Here’s a case study on how we got a free house, with a ton of equity, plus positive cash flow. It was a pre-vacant house, meaning we found it right before the owners were moving out. We found it using a technique we call “The Sick and Tired of Being Sick and Tired” method (more on that in a minute). Here’s the numbers on the deal…
Purchase price: 23k Rehab: 18k ARV: 110K Exit Strategy: Buy/Rehab/Refi/Hold
We get a TON of deals like this using The Sick and Tired of Being Sick and Tired Method. In a nutshell, it’s targeting landlords, but we use a backdoor approach that works like gangbusters. We spent years targeting tired landlords the way the guru’s teach, with the typical postcards, and never got a very good response. Once we figured out our new system, we started making money hand over fist by targeting tired landlords. Using one of the systems we teach in The Pre-Vacant Goldmine, we actually find most of these houses right before they become vacant – which tends to be when the landlord is at their most motivated point.
We found this house while farming a neighborhood near a private college. We ended up negotiating a great deal with the seller, who was highly motivated, didn’t have the money to fix the house up and didn’t think he could sell because the house was in such bad condition. We ended up buying it, rehabbing it and then refinancing. We pulled all our cash back out, plus some and then rented the house out for $900/month. Our positive cash flow is $473/month. Not a bad deal. We got all the money we put into the house back, put 30k in our pocket on top and added $473/month to our income. Had we not figured out our system for finding pre-vacant houses that our competitors don’t know about, we would’ve never found this deal…
Want to find and do deals like this in your town? Watch this video on finding Pre-Vacant Houses…
