Pure Buy & Hold

[Graham Bozarth]

Investment Info:

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

Purchase price: $58,000
Cash invested: $5,000

Purchased in Feb 2020 as our first true investment property, a foreclosure near a military base with strong rental demand. Needed minimal repairs including small flooring replacement, trash removal, and curb appeal upgrades. Faced our first non-paying tenant during COVID with eviction bans, which taught us the importance of reserves and understanding the eviction process. Now a steady cash-flowing asset in our portfolio.

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

We were interested in this deal because it was a foreclosure located near a military base, which meant consistent tenant demand and low vacancy risk. It was our first purchase as a pure investment property without the need to live in it, allowing us to focus entirely on cash flow. The home was in solid condition and required only minimal repairs, including replacing a small section of flooring, removing trash, and improving curb appeal.

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

Looking at foreclosures and driving around the city.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

We added value to this deal by completing light but impactful improvements that made the property more appealing to tenants. This included replacing a small section of damaged flooring, removing trash and debris from the property, and enhancing curb appeal through basic landscaping and cleanup. These minor updates allowed us to quickly attract quality tenants while keeping renovation costs low, which helped maximize our cash flow from the start.

What was the outcome?

The outcome was a smooth and profitable first experience with a pure investment property. After completing minor repairs and cleanup, we were able to place tenants quickly thanks to the strong demand near the military base. The property began generating steady cash flow almost immediately, with minimal ongoing maintenance needs.

Lessons learned? Challenges?

Lessons Learned - Having a reserve fund is essential. This property was our first experience with a non-paying tenant during COVID, and state eviction bans made the situation more difficult. We learned how the eviction process works and the importance of being financially prepared.

Challenges - COVID restrictions prevented us from evicting a non-paying tenant, creating financial strain and delaying cash flow.