Real Estate Rookie From a Foreclosure & 200 Credit Score to Building Wealth with “Grandma” Houses
Jan 26, 2026
Sarah Weatherbee, a real estate investor who rebuilt credit after a foreclosure, shares her comeback story. She talks about spotting and renovating charming 'grandma' houses. She explains low-money-down strategies, turning a rehab into big profit, scaling into midterm rentals and house hacking, and navigating repairs, tenants, and tricky negotiations.
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Foreclosure, Nicaragua Escape, And Deed In Lieu
- Sarah lost her first home during the 2008 crash, moved to Nicaragua, and rented the property while avoiding payments.
- She later returned, accepted a deed in lieu of foreclosure, and it hit her credit down to ~200 before she rebuilt it.
Rebuild Credit Strategically After Derogatory Events
- Embrace and actively rebuild credit after major derogatory events by opening and responsibly using multiple accounts.
- Pay balances early, keep long-standing accounts open, and be strategic about timing hard credit pulls when shopping loans.
Failure Revealed Future Opportunity
- Sarah viewed the loss as a market signal showing potential upside and vowed to do it smarter next time.
- That mindset shift — seeing opportunity in others' acquisitions — fueled her return to real estate.
