Today was the day I closed on a mixed usage 6 unit building for $22,000. The Last Schedule E I saw when I was first looking at it when the bankrupt owner was first trying to sell it for 195K was $2700 month of rental income. Brick building with a new roof in 2005. Very little to be down on the outside. Inside a few electric panels need upgraded, a little plumbing, paint and carpet and I should be ready to rent the units out. I still can’t believe this find. I walked out of closing today stunned that the bank actually sold it to me at this price. Should produce serious cashflow and allow payoff in 3 years or less. And did I mention it appraised at 208K? The deals are out there folks. You just have to find them and be patient. This property never hit the MLS or went through a realtor. I started looking at this property in the summer of 2006 and never let it get too far out of my mind. Took 18 months but I found my diamond. Hopefully this story provides some inspiration for other real estate investors.
Dang, good find dude!
Is it common for banks to have properties that never hit the MLS?
If it is, I could see how banks could be a major source of deals, especially since they want to get rid of that morgage payment!
If I went up to my local banks and asked “Do you have any investment properties? Im lookin’ to buy some.” Do you get any luck with that?
Again, Good job!
Get to know the loss mitigation departments of the local banks. They are a good source for opportunities if you can show them you are serious about buying distressed properties they might have in their portfolio.
GREAT SCORE!!!
Excellent!
Generally…where are you in the Northeast???