Turn a Sour Note Into Something Sweet.

Here is a note buying deal that was purchased at discount thus acquiring a good piece of investment real estate, by means of foreclosure.

The property consisted of four residential income units in a good neighborhood. The payment on the first loan was $1,000 a month. Fair market rental income was $1,600 per month.

The property was owned by inexperienced property owners from California. They did a poor job in managing the property. Two of the four units were occupied by deadbeat renters as the other two sat empty.

The second trust deed was purchased when the owners failed to make payments, resulting in foreclosure. During the foreclosure, rent was collected from the two existing renters and then they were evicted and the property was cleaned up by a property management company.

After the smoked cleared the property went to auction. Is was purchased and the owner now had a nice clean four unit rental, with an income of $1,600 per month and an additional $1,000. A good property management company was hired, who were paid $160 a month, leaving a good positive cash flow and good profit margin. The total investment was $27,000