All Forum Posts by: Brett Pedigo

This sounds like you are frustrated by some of the attention you are receiving when listing your properties. It's a teachable moment for someone like me who may be interested in short term rentals, while dipping their toes in before going full force. Be respectful of the listing.

I am interested in trying this. I would be up front list the pros and cons John Underwood listed. Seems like there are possibilities if the intention is completely transparent and both parties can profit.... partners in a sense instead of being sneaky. 

If a listing does not state they are against it, would approaching landlords with this method of investing be OK?

Thanks!

Investment Info:

Single-family residence buy & hold investment in Kokomo.

Purchase price: $86,000
Cash invested: $15,000

Buy and hold SFR 3+2. Right on the nose of Brandon Turner's advice!!

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

We are blessed to have purchased our own home for our family in Los Angeles. Now we have begun our investing future. We are focusing on SFR and will adjust to the BRRR method in the future.

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

I found this deal through an agent. It's a hot market and I ran the numbers. I offered 8k over asking because the numbers worked. the house received multiple offers and I beat them out. I had the home under contract within 12 hours.

How did you finance this deal?

Traditional financing, but I was able to secure a 15% down payment on an investment. My lender is amazing and I highly recommend her!

How did you add value to the deal?

The home needs light rehab. Paint, small bathroom fixes. My brother is handling that aspect.

What was the outcome?

Tenants move in July 1! Cash flows nicely and we have reserves for issues if they arise. This is an exciting time. We are eagerly awaiting out first ever passive income check!!!!

Lessons learned? Challenges?

One thing I would have stood my ground on a bit more is the fixes to the home. Since it's a traditional purchase over asking, I asked for some patches to the roof and the non working fireplace. They offered a lowering of the purchase price to cover the cost. I allowed that. The owner was not feeling well (I think Covid). In hindsight, I would have stood a bit firmer there. But I wasn't going to let the home slip away for that.

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

I do! I would recommend my agent. He is mainly non investor for now, but he is money smart. He is looking to get into rentals and property management soon. As for my lender, She was incredible. Smart, funny, on top of things and really creative. She is the best!

Hi, 

Can I have more  information?

Thanks!

@Maggie Tasseron, thanks for that! I figured desperate measures for desperate times. I appreciate the guidance here! 

@Matt Devincenzo, @Richard C. - Sorry! Wow. I didn't know that. It seems a bit unethical, but in an extreme case like this.... Thanks for the warning!!

Just a thought... Do you have the utilities in your name? If not, can you switch into your name putting a lock on who has access and sit them off? Sorry to hear about your troubles.

Thanks @Stephen Chittenden, That's the route I would like to go in the future! 

Looks great! How did you finance 94k in rehab with only 16500 down?

thanks for sharing!

Wow! Thank you all for the responses!

Anson Young, what is the best way to evaluate areas? I have never been to Denver,but I hear great things about it!
Brandon Turner thank you for this site! I know it will take a great deal of dedication and time, but this avenue will be invaluable!
Mike D'Arrigo I was doing a bit of research the areas of the houses in Indy, and it seems to be one of the worst parts of the US! What a difference from Noblesville! I will end you an email! Thank you for the help!

Thanks for the warm welcome! I do have a quick question. I am in LA, but my brother is in Indianapolis. I see foreclosed and distressed properties on zillow.com for cheap. 15 grand or so... I do not know the area, and assume it is pretty bad. My question is if a distressed property has hit the masses on Zillow or Trulia, is it not a deal? Thanks again!

Brett