First Turnkey House....Was it worth it?

[William Bratrud]

Investment Info:

Single-family residence buy & hold investment in Maryville.

Purchase price: $209,000
Cash invested: $1,000

I Purchased this property as a turnkey Single family 3 bed 2 bath in desirable Maryville School district.

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

The house was turnkey, the market was skyrocketing and I had a chunk of money in the bank that I didn't want to see disappear with the onset of the new Biden regime stepping into power.

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

We were looking everyday, just waiting to pull the trigger. Nothing was coming available under 200K even stuff that needed a bunch of work. I saw this thing come back on the market after going pending and whammy I scooped it up. Didn't ask for anything, no inspections, no appraisal, no finance contingency, I gave the seller a dream offer that they couldn't refuse. All cash 10 day close no hassles. Sometimes you do what you gotta do....

How did you finance this deal?

Cash

How did you add value to the deal?

Installed recessed LED lights in the kitchen and laundry, painted the exterior of garage door and shutters, replaced exterior wall lights. The house was pretty much turnkey i just added some finishing touches.

What was the outcome?

We rented the house out right away to some great tenants and put a private loan on the property for 175K. We left about 30K of our own money in this deal and it currently cashflows quite well at about $600/mo. after all expenses.

Lessons learned? Challenges?

I probably could have offered about 10K less but then again i may have lost it. When its a hot market sometimes you just need to do what you have to do to make the deal happen. At the end of the day Im happy with the investment but it will likely be my last single family as I typically am seeing much greater returns in my small multifamily properties.

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

Yes, i sure did use an agent and I worked this deal the way I work all of my deals. I build relationships with Agents and ask them to bring me deals, when they do I am happy to have them represent me. Even now that I have my real estate license I continue to work with other agents in this capacity. Im a firm believer that there is plenty to go around and at the end of the day it is our reputation and our relationships that determine our success as real estate investors.