This is a 3/1 house we helped a client purchase in the 30032 zip code.  

Before purchasing, we looked at about 10+ bank-owned houses over a one-month period.  We actually looked at this house when it was listed for $47k and almost made an offer.   A few weeks later we saw had been reduced to $40k and we put it under contract.

The rehab hit some snags when we found foundation problems.  We ended up replacing most of the floors and adding some additional piers.  Even with the extra expenses, we managed to keep the rehab under $13k.

Including all the loan expenses, holding costs, rehab and my fee, the investor is in it for around $68k.  The house appraised for $105k and he was able to get a 75% LTV loan at 6.37% interest rate.

Since the house was in such great shape, we were able to find a tenant almost immediately, so it has positive cash flow and tons of equity (not to mention tax-free cash out) right out of the gate.

In this market there are hundreds of deals just like this one.

Click here for pictures.

Click here to see the nuts and bolts of the deal broken down.