Investing in "Grab Bag" Properties

[Kimberly Kesterke]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $17,900

This was a deal I coined myself a "grab bag" lol. Do you remember the old brown paper bags that had random stuff in them when you were a kid? These were mostly at family owned hardware and pharmacies back in the 1980's... Well- did you know that you can do that with rental properties? (yikes). And these are not for the faint of heart- BUT I was able to score a property in NY, for $17,900 and sold it on seller financing terms for $653/ month.

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

I was becoming more of a 'tired landlord' and did not want to deal with maintenance anymore. However, I still am a BIG FAN of cash flowing rental properties. I joined a buyer group and found this little house priced pretty low- and decided to give the strategy a try.

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

I found it through a buyer's club and the deal was as-is. No negotiation occured, but then the price was very low and attractive to begin with.

How did you finance this deal?

Cash

How did you add value to the deal?

I cleaned it up and then marketed and sold it through Facebook, Zillow and For Sale by Owner. I marketed it as a seller finance- land contract deal.

What was the outcome?

I ended up selling the property over 10 years to a local gentleman.

Lessons learned? Challenges?

Because this was a different strategy- not a flip or standard buy and hold, the biggest learning lesson was patience. Eventually a buyer will come. Eventually it will work out. Especially now with interest rates on the raise- there is an incredible opportunity as private landlords and private investors to help others get into homes and become home owners.

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

No