Full Price FSBO Purchase Turned Cashflowing Investment

[Nathan Shepard]

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $140,000
Cash invested: $500

Market price investment purchase turned buy and hold rental

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

Single Family Rentals are my favorite thing!

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

Homeowner told me their neighbor was putting a FSBO sign out. I was familiar with the area, knew the market was hot, so I made a full price offer less than an hour after the sign hit their yard

How did you finance this deal?

Conventional financing (pulled cash out of a HELOC on another property for Cash to Close)

How did you add value to the deal?

N/A very minor updates needed - Less than $500 rehab

What was the outcome?

The numbers worked as a rental. This property cashflows every month and has been one of my best, low maintenance properties

Lessons learned? Challenges?

Just because you pay full price doesn't mean its a bad deal. RUN THE NUMBERS!

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

Putting feelers out in neighborhoods is a great way to be the first to find out about an upcoming deal.