Tired Owner that Sells at a Discount

[Andrew Postell]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $12,800

This property was purchased from an owner who was tired of being a landlord. This is a common story - owner isn't managing the property well. Owner isn't charging market rent. So, owner then feels like the money being made isn't worth it. This happens time and time again. So, the owner sold the property to me at a discount. Less than $4,000 in rehab on the property when purchasing it.

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

This was a newer build property that was already tenant occupied. Saw the condition of the property and felt there was an opportunity to purchase the property with very little out of pocket. Also, the opportunity to charge more for rent was there as well.

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

Found this deal through a wholesaler.

How did you finance this deal?

Financed the acquisition through Hard Money and then refinanced through traditional, 30 year fixed rate.

How did you add value to the deal?

No need to do any value add to the property. It was almost completely turn key.

What was the outcome?

Purchased home and it is still in my rental portfolio with a 3.5% 30 year fixed rate mortgage.

Lessons learned? Challenges?

The lesson is to keep networking at real estate investor groups. That's where I met the wholesaler.

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

Worked with Investmark Mortgage out of Dallas, Texas that I would highly recommend to anyone. Also, worked with Cameron at ProCo Insurance who also provided a great insurance policy at a very good premium on the home.