Probate SFR Sale From the MLS at Bargain Price

[Dante Pirouz]

Investment Info:

Single-family residence buy & hold investment in Port Huron.

Purchase price: $15,500
Cash invested: $21,000

An SFR from a probate estate sale that we negotiated to a really low price.

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

I wanted to add another rental at a good price in a good family neighborhood and this property had been vacant for years.

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

It was listed on the MLS for about a year as a probate sale. The agent was not local so the listing had bad pictures and an unenthusiastic listing. I watched this listing for months and when the price kept dropping and hit $20K, I made an offer.

How did you finance this deal?

Cash

How did you add value to the deal?

We redid flooring, light fixtures, paint inside/outside, new windows, appliances. This was commercially zoned as an office so the bathroom was an accessible toilet only but a big footprint. We reconfigured the space and put in a tub/shower for a spacious full bathroom. It also has a small office/guestroom space off the kitchen which can't be listed as a 3rd bedroom because no closet but is a bonus for renters. We also converted the grody utility room into a nice laundry/mudroom.

What was the outcome?

This has been a high demand rental because it is spacious and in a great location. It has a front view of an open park, has a small backyard covered with concrete which gives lots of parking but low upkeep which busy renters like. The value is now close to $90K for the property.

Lessons learned? Challenges?

The big lesson is to have patience. The longer you wait for a listing to age the more leverage you have to negotiate a low price because the agent and the sellers get tired of waiting for an offer.

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

Yes, Paul Steward our agent.