Long-term investment property

[Nathan Gesner]

Investment Info:

Single-family residence buy & hold investment in Cody.

Purchase price: $230,000
Cash invested: $57,500

This is a single-family home located in a nice cul-de-sac on the golf course.

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

I was able to negotiate a price below market and I know the location will attract good families and continue to appreciate.

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

Small town, so I knew the owner was divorcing and couldn't afford to keep it. She approached me for property management but I asked if she was interested in selling, which she was. I made an offer that made sense for me and she accepted.

How did you finance this deal?

We put 25% down and financed with a local lender we've used in the past.

How did you add value to the deal?

We paid 25% below market. This price allowed the seller to walk away with a little cash in hand.

What was the outcome?

We rented it quickly and there's a great family living there now.

Lessons learned? Challenges?

Don't be afraid to ask! Only pay what the property is worth to you. If the numbers don't work, don't do it.

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

I am a REALTOR and represented myself.