Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago,

User Stats

13
Posts
2
Votes
Jacob Lindgren
2
Votes |
13
Posts

First Rental. Buy and Hold. Financed by mortgage.

Jacob Lindgren
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,000
Cash invested: $13,205

3 Bed, 1 Bath. great location with appreciation. Purchased undervalue and has great CoC ROI. Turnaround from receiving the keys to receiving the deposit was 24 days.

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

Seller was off market and very motivated. Was easy to negotiate with.

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

Friend of a friend. I negotiated directly with the seller. I was transparent with my offer and my intention. We got along very well and both parties left the closing satisfied.

How did you finance this deal?

20-year Mortgage. 15% down.

How did you add value to the deal?

The most value was gained during the offer negotiation. The repairs needed on the property were mostly cosmetic and I did all the work myself.

What was the outcome?

The initial purchase price was $85,000. I negotiated to $68,000 with prorated RE taxes.

Lessons learned? Challenges?

Positive lesson, trust your gut and the numbers. A year ago I would not have offered aggressively because I would be worried about upsetting him. When I explained where I was coming from, there was no anger or confusion from the seller. After he sat on my offer for a couple weeks he was ready to move forward. A negative lesson, make sure to get quotes from multiple sources for each expense. I believe I am paying too much for insurance. I could have spent more time on that.

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

I have an excellent team. But I am in a small town so I will provide their info if requested.

Loading replies...