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Updated about 4 years ago,

User Stats

30
Posts
11
Votes
Nicholas Potocki
  • Investor
  • Georgetown, KY
11
Votes |
30
Posts

My seventh rental property

Nicholas Potocki
  • Investor
  • Georgetown, KY
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $128,300
Cash invested: $55,000

Simple 1250 sqft. single family 2 bed, 1 bath ranch built in the 1980s in a C-class neighborhood.

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

Being a simple brick ranch it appeared to have low long-term capital expenditures. The roof is only a few years old and the HVAC is only a year old. I also felt confident that I could covert a living space to an additional bedroom. I felt like I could apply many of the strategies I learned about from BP to this rental.

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

I found this deal on the MLS. It was listed for $125,000, but I offered $130,000, sight unseen, hours after it came on the market. I gave the seller's only a few hours to accept my offer. I knew I had to be aggressive and move quickly in a hot market.

How did you finance this deal?

30 yr fixed conventional loan.

How did you add value to the deal?

The biggest value add was converting a second living space to a third bedroom.

What was the outcome?

During the 4 months of rehab, market rents have increased, and the numbers still work well for me. At the moment, the supply for rental housing in the area is almost non-existent. In less than 12 hours of having the listing on the market (most of them overnight), I have had 11 inquiries!

Lessons learned? Challenges?

I anticipated $12,000 in rehab, but it ended up costing twice that amount because I want everything to be functional and have a luxury level rental home for my clients.

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