Another successful REO!

[Mack Lane]

Investment Info:

Single-family residence buy & hold investment in Bainbridge.

Purchase price: $85,000
Cash invested: $10,000
Sale price: $111,000

I found this property at an online auction. It was REO and had been vacant a while. This home had a slimmer margin than I would have liked but I knew it was in good shape and would be a great rental. It was on a full acre and had a nice lake view across the street. I rented it for a while and then exited as I saw other opportunities.

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

The home was less than 10 years old and had very nice features that would make it a desirable rental and retail home.

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

I found this deal at an online auction. I was the only bidder.

How did you add value to the deal?

Paint and carpet.

What was the outcome?

Rented it for a year and then sold.

Lessons learned? Challenges?

This home helped me to set a higher bar for what I would accept for a profit. I did well on this property in the end, but it cost me another deal that would have netted higher profits. The other lesson learned here was that while big yards are attractive they are more difficult to maintain. My idea of what keeping the yard looking neat and the tenants idea of neat were not the same!