New SFH From My Home Town

[Nicholas Zaharevich]

Investment Info:

Single-family residence buy & hold investment in Waitsburg.

Purchase price: $87,500
Cash invested: $28,561

Contributors:
RaeLynn Zaharevich

The 2 bed, 1 bath house was a great deal bringing in $250 in monthly cash flow was almost lost due to,what I feel is incompetent lending professionals. I'm the end, it worked it great!

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

I was home for an annual family get together, and was asked to help the lady down the street move her things because she had recently sold her home. While I was helping her move, I couldn't help but check it out on Zillow to see what she was asking.

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

A few weeks later, I discovered that her house was back in the market at a reduced price, so we decided to make a lower offer in order to make this a great buy and hold rental. My original offer was declined and my agent was unresponsive, so I fired my realtor and went straight to the listing agent. We discussed each of our concerns, hers we're more about getting the owner a small nest egg, and I was looking to meet my cash flow (quad chart) criteria. We found some middle ground.

How did you finance this deal?

I originally started with a conventional loan and through the process, the lender kept kicking the can down the road. I complained enough that another investor listened, looked at the deal, and funded me the amount I needed... And 1% lower than the bank!

How did you add value to the deal?

We didn't do much other than update a few things. We replaced all the floors with LVP, replaced every outlet, light switch, and light fixture (finding some serious fire hazards along the way). We also painted all the walls, doors, and trim.

What was the outcome?

We were able to get a tenant in the first of the month paying above market rent.

Lessons learned? Challenges?

Banks suck... And I only want to do cash deals from now on.

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

None and I'd recommend, and my lender prefers to remain private.