Pounced on looked-over property

[Tim Lucas]

Investment Info:

Single-family residence buy & hold investment in Canby.

Purchase price: $402,000
Cash invested: $8,000

Basic SFR that sat for longer than expected. Listed at $420k. Price dropped and I got it for $402k by being patient.

What made you interested in investing in this type of deal?

I have another rental in Beavercreek. I got 60 inquiries when listing that one for rent. So I knew I could get top dollar for this. Got $2,350/mo for this 1100 sq ft 3 bed/1.5 bath due to high demand for SFRs in this area. Cash flowed on day 1, which is not typical for an SFR in a high-cost market.

How did you find this deal and how did you negotiate it?

I kept searching active listings for duplexes. Those being few and far between, I noticed a home that had been sitting and had a $20k price drop. I had my Realtor check into it. We went in $2k over the new asking price and got it. It just needed paint and carpet, which we completed and had it rented out within 2 weeks of closing.

How did you finance this deal?

Fannie 25% down conventional.

How did you add value to the deal?

Very little was needed, but I did carpet and paint to make it a really fresh and inviting place for the tenants. I'm looking into A/C since Portland summers are getting to be more like CA ones!

What was the outcome?

I'm getting $2,350/mo on a payment of $1,700/mo which leaves plenty of room for vacancy, repairs, management, etc.

Lessons learned? Challenges?

Being an out-of-state buyer, it's hard to get the feel of the house. However, my brother is local and he walked through and gave me his assessment. You can't get a good feel for how bad carpet or paint is with online pictures so it helps to have people on the ground to help, even if it's just your Realtor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I worked with Brad Hammond and he was able to give guidance on the negotiation, which inspections to get, and a lot more. He did video tours and did some extra work since I'm an out-of-state buyer.