Off market deal while listing my house for rent.

[Nadir M.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $190,000
Cash invested: $38,000

Found this property while listing one of my nearby properties for rent. Tenant told me the owner of the property she's currently renting is selling and she needs a new place. I was able to talk to the owner and I ended up buying his property and keeping the original tenant. She's been there this entire time and i've had no issues; win-win-win!!!

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

The situation that presented itself was an opportunity i couldn't pass up.

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

I found it while listing one of my current rentals for sale. The tenant came up to me and told me her landlord was selling. She was begging me to place her in my property. She had a recent bankruptcy claim and some of the other applicants were more qualified. I did feel bad and wanted to help her. I talked to the owner of the house she's renting and asked if I can buy and I will keep her. We negotiated a deal, his wife was the agent, so he was able to save on commission and i got the deal.

How did you finance this deal?

Conventional 30 years

How did you add value to the deal?

I got the house below market value because it was off market. I didn't add much value as the tenant never vacated besides appreciation of course. 

What was the outcome?

Tenant stayed and is currently there 3 years later. Previous owner was happy because he didn't have to pay any realtor costs and did not have to deal with placing house on market. I am happy because I was able to purchase the property and help someone in need. She was also able to keep her kids in that same school district too.