Bay City Michigan LTR

[Beth Avedis]

Investment Info:

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

Purchase price: $21,400
Cash invested: $1,000
Sale price: $41,900

2 bed, 1 bath, 808 sq. ft. Bought Cash, Rented at $700 mo.

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

I wanted to start a real estate portfolio and friends of mine were from that area and still have family there so we had an instant local contact for property management that we felt at the time was trustworthy.

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

Realtor.com. Offered cash and quick close.

How did you finance this deal?

Cash

How did you add value to the deal?

Paint and carpet - minor repairs

What was the outcome?

Cash flowed extremely well. Ended up liquidating this and two other properties that the brothers of our friends were managing. Small town, not a lot of other management options, plus the fact that they were family friends. Rather than destroy that relationship and switch to the one other guy in town, we sold and never told them it was because of their incompetence.

Lessons learned? Challenges?

Think twice about hiring family of friends, make sure you transfer utilities into the renters name if possible,

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

Roy Lerma - Fitz You Homes in Bay City/Saginaw. Knowledgeable Realtor and knows the market well. Helped us negotiate a great exit on all 3 properties.