High Cash Flow with NO Money out of Pocket!

Real Estate Deal Analysis & Advice
7yFollow

High Cash Flow with NO Money out of Pocket!

Troy Nonnemacher
Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes

Investment Info:

Single-family residence buy & hold investment in Mount Carmel.

Purchase price: $4,500
Cash invested: $6,000

Awesome return on this Buy and Hold with no money out of pocket!

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

Hi Cashflow Strategy that this property met the criteria!

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

Off market Mailer. A I always do I let the seller throw out the first number and it was $5,500 less than I was willing to pay!

How did you finance this deal?

Private money lender.

How did you add value to the deal?

We put in new flooring and a fresh paint job!

What was the outcome?

Awesome monthly cashflow!

Lessons learned? Challenges?

Always let the seller throw out the first number!

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

This property was rented on Facebook Marketplace.

4Reply
125 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Marisa R.:

OMG and I thought I was doing well at $32,000 renting st $800 per month

those types of properties are available all over RURAL PA  just fyi 

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
6Reply
See this reply in the discussion

27 Replies

Jump to latestLatest
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    That's an incredibly low priced property. Why so cheap? How much are you renting it for?

    3Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Taylor L. It's an extremely unique market in an old coal region. Rent is $575 per month on this one.

    2Reply
  • Marisa R.
    Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    7y

    OMG and I thought I was doing well at $32,000 renting st $800 per month

    3Reply
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    @Troy Nonnemacher that's an incredible return! People need housing in those areas, I'd be concerned about the general decline but with such an awesome margin It would be hard not to do that deal. I'm originally from PA and I've spent some time in coal and steel country, it's a shame how much that area has declined over the years.

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Marisa R.:

    OMG and I thought I was doing well at $32,000 renting st $800 per month

    those types of properties are available all over RURAL PA  just fyi 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    6Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Taylor L. I agree that it is a shame what has happened to those areas but on the bright side I am able to provide affordable housing using a rent to own program. I feel like with the lack of affordable housing and the inexpensive purchase prices it does not have much room to go down!!

    0Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Marisa R. Ha Ha! That is still a great margin. It is a unique market for sure!

    1Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Jay Hinrichs I agree with you and will be expanding in to another!

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Marisa R.:

    OMG and I thought I was doing well at $32,000 renting st $800 per month

    those types of properties are available all over RURAL PA  just fyi 

    these areas as opposed to larger metro's ,, the properties are not in war zones.. they are just in towns that kind of died.

    so incomes are low.. but you don't have to worry about getting robbed and gang bangers etc.. the main issue is again just lack of income for many who live there.. can be a collection challenge at times.. but totally different than buying a 5k hood house in a bigger MSA which we all know what those are about.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Marisa R.
    Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Marisa R.:

    OMG and I thought I was doing well at $32,000 renting st $800 per month

    those types of properties are available all over RURAL PA  just fyi 

    Thanks Jay

    But I expect no expected growth????? 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Marisa R.:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Marisa R.:

    OMG and I thought I was doing well at $32,000 renting st $800 per month

    those types of properties are available all over RURAL PA  just fyi 

    Thanks Jay

    But I expect no expected growth????? 

    YUP  unless some major employer comes in that is not there now.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Freddy Neuhold
    Investor · TX · Member since 2019 · 8 posts · 2 votes
    7y

    Wow! That's awesome! Congrats!

    What is an off market Mailer? Sorry, I'm new to BP and REI. Trying to learn as much as possible

    1Reply
  • Selina Banda
    La Vergne, TN · Member since 2016 · 93 posts · 28 votes
    7y

    @Marisa R. That is good too to me, I mean cash flow

    1Reply
  • Selina Banda
    La Vergne, TN · Member since 2016 · 93 posts · 28 votes
    7y

    @Troy if it’s working for you, go ahead. Well done

    0Reply
  • Selina Banda
    La Vergne, TN · Member since 2016 · 93 posts · 28 votes
    7y

    @Freddy welcome to BP

    1Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Marisa R. and @Jay Hinrichs I agree 100% that there is minimal equity growth but it is a nice cashflow addition to a more diversified portfolio. Also I do rent to own in these areas to really eliminate most of the landlording that comes with a lower class rated investment.

    2Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Selina Banda Hi there! I agree it is great cashflow. I am netting $300 per door. I figure about 30 units should be a comfortable number!

    1Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Freddy Neuhold Hey there! An off market mailer is just mailing to the owner of a property that is not listed with a Realtor. You can create your own list or purchase them from online sources. Once you have a list you need a good letter or postcard then you put some addresses on and throw them in the mail and wait for the phone to ring!

    1Reply
  • Freddy Neuhold
    Investor · TX · Member since 2019 · 8 posts · 2 votes
    7y

    @Troy Nonnemacher That’s so interesting, I’ve never heard of off market direct marketing in the real estate business. Thanks for the info! Where would I be able to get a list of properties that aren’t listed with realtors? How often do you find really good deals with off market mailing?

    0Reply
  • Vance Fields
    Houston TX (houston, tx) · Member since 2019 · 7 posts · 1 vote
    7y

    @Troy Nonnemacher so did you pay 10,500 total?

    0Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Vance fields yes it was $4,500 for purchase and $6,000 for repairs!

    0Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Vance Fields yes it was $4,500 for purchase and $6,000 for repairs! 

    0Reply
  • Troy Nonnemacher
    OP
    Flipper/Rehabber · Lewisburg, PA · Member since 2017 · 103 posts · 45 votes
    7y

    @Freddy Neuhold Yeah it is a pretty common strategy.  I would say some investors exclusively market using direct mail! Check out some of the resources on BP they can probably explain it better than I can but feel free to ask me any questions you may have!

    1Reply
  • Ehsan Rishat
    Specialist · Carlsbad, CA · Member since 2018 · 1k+ posts · 638 votes
    7y

    WOW! First time seeing a property at such a low price. Congratulations @Troy Nonnemacher!

    1Reply
  • Dustin Mathenia
    Flipper/Rehabber · Dallas, TX · Member since 2017 · 174 posts · 157 votes
    7y

    @Freddy Neuhold

    List source is where you can buy the list but I suggest listening to the podcast they talk about how to do it in detail. Also depending where you are it might not he worth it . Like I live in DFW in Texas and there are companies spending 100k+ a month in mailers and I've heard of people getting 10 letters a day so I dont waste my time doing it. Works for some people

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free