Excellent Single Family Home - Obtained through Networking

[Tara Kinney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $3,000

Contributors:
Cory Gamble

SFH - 3bed/1bath home. Purchased this property through a person I met in a BiggerPockets meetup. This was his first property, very nicely rehabbed. He needed to use his money elsewhere and wanted to cash out quickly, and I was able to close on it with cash. Bought sight unseen just buy the pictures and a handshake. It appraised for $134K. Minor tenant issues on transfer and now renting out at $1300/mo.

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

It was brought to by a person I met at a BiggerPockets meetup.

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

Didn't negotiate. Made good repour and I trust the word of the person bringing me the deal. He told me about a place he wanted to unload, I looked it up online, saw the recent pictures and asked him about any problems. Closed the deal, sight unseen, based on his word.

How did you finance this deal?

Closed with Cash with my HELOC, then refinanced for 100% back.

How did you add value to the deal?

Evicted poor tenant and minor fixes.

What was the outcome?

Appraised for $134K and got it rented out $1300 per month.

Lessons learned? Challenges?

NETWORK NETWORK NETWORK. I have gotten two wonderful properties just by attending meeting ups and getting to know other local like minded investors. Generally I wouldn't buy a property sight unseen, but I had gotten to know this investor and trust goes a long way. Challenges - problem tenant. Turn it over to the property manager and nip it in the bud quickly.

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

No realtors involved. Used Blue Grass Savings Bank for financing.