Acquired 1-bedroom rental property generating 30%+ cash-on-cash return

[Ryan Koziol]

Investment Info:

Condo buy & hold investment.

Acquired 1-bedroom rental property, generating 30%+ cash-on-cash return. Currently appraising for more than double the price I purchased.

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

Strong cash flow generation

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

Heard the owner was interested in selling so I proactively reached out and secured the sale

How did you finance this deal?

Acquired the property with cash (to compete with all-cash buyers at the time) and then refinanced 2-3 months post-close

How did you add value to the deal?

Replaced the carpet with hardwood floors & new trim, painted all the walls, and completely renovated the bathroom

What was the outcome?

Property is generating 30%+ cash-on-cash return. Currently appraising for more than double the price I purchased.

Lessons learned? Challenges?

Off-market deals are the best way to secure a low purchase price, however, finding off-market deals can take some persistence (and luck)

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

No agent involved. Used a local attorney to handle the closing docs for a lower fee. Working with local credit union to refinance at lower than market rates