This was a first-time venture for me in that I was entirely remote. This deal was also purchased in a solo 401k that used non-recourse financing. I found the agent here on BiggerPockets. The seller was ready to move and given the inspections from a prior buyer that had fallen out of escrow, we were able to get it in contract under list price. Just as we entered the deal, the pandemic reared it's ugly head too. In the end, it rented in the first month for $100 more than anticipated.

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

This was an interesting challenge because it was my first time buying a property from within my solo 401k. In doing so, I had to be very careful at how the ownership of the property was structured to make sure that I, personally, was not an owner nor were any of my personal funds used. This property had to be entirely owned by my 401k as the entity... not me. Additionally, this was my first deal done entirely remote.

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

I found this deal after connecting with an agent/investor in the area. While the property was listed, it had just fallen out of contract with another buyer and my agent had first hand insight into the condition and story behind the sale. Leveraging the former buyer's experience, we were able to get this one under contract below listing right from the start and include agreement for the seller to address some repairs right from the get-go.

How did you finance this deal?

I had to use non-recourse commercial financing for this deal. This property was purchased from within my solo 401k and thus I, personally, could not have ownership of the property. Rather, my 401k needed to be shown as the owner. Additionally the debt had to be non-recourse since I, as a person, was not an owner, per se, of the property.

How did you add value to the deal?

The surfaces in the property were well used and thus had to be refreshed. My agent recommended a great property manager prior to closing and I got her involved early on to assess the repairs she felt would add value. She was able to get quotes lined up and upon closure we were able to pull the trigger to get contractors in to replace the flooring and paint the entire house inside and out. I also replaced all the blinds in the house.

What was the outcome?

My property manager was able to get it rented for $100/mn more than what we budgeted when I planned to buy the property after the facelift we did on the property. It was rented the first after closing with a one year lease signed.

Lessons learned? Challenges?

I learned so much about buying remotely and buying within a retirement account. This was truly a valuable experience given all that, fortunately, went right. Having learned the process now, I can hone it to tighten the numbers and streamline the efforts for all of us in the future. This was accomplished, too, during the Covid-19 pandemic. So despite the challenging conditions, everyone pulled through and made this a great success.

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

I did. John White was my agent with his team. Carolyn Dietrich is my property/project manager. Both are actively involved in RE everyday and successful investors themselves. Their experience and established network were key to the success of this effort for sure. Big thanks to them and their respective teams.