Oklahoma City Bank Owned Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $92,600
Cash invested: $25,000
This was a SFH owned by a bank and in need of about $40,000 in repairs. I was able to use the bank's money to finance most of the repairs and just had to come to closing with 20%. It took several months, but I goth the property fixed up and rented out and it has been a great property for me for a few years now.
What made you interested in investing in this type of deal?
Bigger Pockets inspired me to go out and find a great deal.
How did you find this deal and how did you negotiate it?
I found it through Homepath (I don't think this program is even around anymore) which allowed me to put an offensively low offer in. The bank countered in the middle and I worked them down a little bit more until we finally settled on price.
How did you finance this deal?
I used a smaller bank and used a Line of Credit to purchase and rehab followed by refinance to better terms.
How did you add value to the deal?
By rehabbing the mess out of this place and making it look nicer than 90% of the other rentals in this area.
What was the outcome?
I'm still very happy with this outcome and want to continue holding onto it.
Lessons learned? Challenges?
The biggest challenge I faced was plumbing which threatened to ruin my profit and displace my tenants. Fortunately there were helpful investors in the area that advised me to look around for other solutions and other quotes. I found that local help without the franchise overhead provides steep discounts on labor. ALWAYS get multiple bids for a project.