Off-market Buy & Hold Appraised for 40% Over Purchase Price

[Collin Groves]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000
Cash invested: $1,000

Off-market , completely renovated deal that local investors brought me. There was a need for cash on the sellers side, so I got a private money deal together. We closed in 28 days, and I rented the property out 6 days later. I recently refinanced the house at $175k, paying off my investors, taking off cash for my next deal, with hardly any maintenance. This is my crown jewel deal so far!

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

This was an off-market deal in a new area for me. However, I had been introduced to the sellers and understood the situation they were in. We closed quickly and easily. This was a win-win for both sides after I was able to bring a private-money lender with me to finance the property.

What was the outcome?

The appraisal came back 40% over the price I paid for the property, so I was able to pay off my investors and keep cash for the next deal all within 14 months. Plus, this property nets $200 a month with little maintenance and great tenants.