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*Newbie* Nets Over $110,000 on Foreclosures

by Mary Omolo   

I bought a house that was in foreclosure in June 2000. I paid $2,000 to catch it up. The unpaid balance was $22,000. There were tenants, who were paying $480 per month rent. The loan payment was $220 per month. Every month I had a positive cash flow of $260, which I earned from June 2000 to March 2001.

I just sold it for $60,000 with no closing costs out of my pocket. I made $38,000 profit plus $2,340 I collected in rent profit. The total profit is $40,340 in one deal.

Last year I bought a house from foreclosure for $12,000. I paid $5,000 to remodel and rented it to a Section 8 tenant from May 2000 for a $1,050 clear profit per month. I cashed out my equity. The house appraised for $88,000. The profit made is $10,500 in clear rent for these ten months, and I'm getting a check for $64,000 or so.

I'm a "newbie." These are the only real estate deals I have done. I'm looking forward to doing as many of these deals as I can find.

 
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