My 1st Deal

[Ryan Katowich]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $20,000

3 Bedroom 1.5 Bath 1200

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

I liked the idea of single family home long term rentals because I knew that when the time was right to sell, I would be selling for full retail-not wholesale.

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

We drove by the property and saw a dumpster and an real estate agent sign. Contacted the agent and was told the property was not ready to show. Told him I was a contractor and was looking for a fixer-upper. Listed at $79K - Offered $35K and they countered at $40K.

How did you finance this deal?

Paid cash

How did you add value to the deal?

$20,000 in materials and sweat equity.

What was the outcome?

CASH FLOWS VERY NICELY. Never had a vacancy. Gross rent / Mo. - $2,050. Net rent / Mo. - $1,700

Lessons learned? Challenges?

1st Deal ever done - kinda ruined our expectations for future deals

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

Used the Listing Agent - This was 3 years prior to us getting our real estate licenses.