364: Making $115K From a Nightmare First Deal (Cops, Evictions, and Break-Ins!) w/Mitch Krotz

Is the fear of “what if?” stopping you from investing in real estate? You could learn a thing or two from today’s guest. Despite a “nightmare” first deal involving every worst-case scenario imaginable, he still managed to come away with an enormous profit!
Mitch Krotz had always wanted to buy a rental property, so when a great deal fell in his lap, it was a no-brainer! But then, seemingly everything that could go wrong did go wrong. Shortly after closing, Mitch was already evicting tenants and wading through trash in his heavily damaged unit. But that’s not all. Police showed up and discovered a grow house in the basement right before Mitch’s ex-tenants broke into the property. To cap things off, Mitch was hospitalized for meningitis during his DIY home renovations. While he had every reason to give up on real estate investing, his persistence paid off to the tune of $115,000 in profit.
If Mitch can do it, you can too! Stay tuned as he shares some of the most valuable lessons learned during his painful first deal. For one, if you’re going to take real estate seriously, you need to manage it like a real business. Invest in systems, organization, bookkeeping, and other tools that will set you up for success!
In This Episode We Cover:
Mitch’s biggest lessons learned from a painful first real estate deal
How to build an all-star team to help run your real estate business
When to DIY home improvement projects (and when to outsource them instead!)
Dealing with troublesome tenants and navigating the eviction process
Why you NEED to allow room for error in your margins
The “secret” up-and-coming market Mitch has identified for short-term rentals
And So Much More!
Links from the Show
Find an Agent
Find a Lender
Ashley's BiggerPockets Profile
Ashley's Instagram
Tony's BiggerPockets Profile
Tony's Instagram
Real Estate Rookie Facebook Group
Join BiggerPockets for FREE
Ask Us Your Investing Question
Apply to Be a Guest on the “Real Estate Rookie” Podcast
The Step-by-Step Guide to Finding the BEST Off-Market Real Estate Deals
How I’m HELOCing My Way to Wealth
Should I Fix My Credit Before Attempting to Invest in Real Estate?
Rookie to Real Estate Investor in 90 Days: LIVE Mentorship Calls
3 Steps to Start Investing in Real Estate + 2024 Mortgage Rate Predictions
Achieving FI with Fewer Doors: The Small and Mighty Real Estate Portfolio
Leaks, Surprise Rehabs, and the Reality of Buying Your First Rental Property
Books Mentioned in the Show
The Small and Mighty Real Estate Investor by Chad Carson
Connect with Mitch
Mitch's BiggerPockets Profile
Mitch's Instagram: @krotzrocket11
 
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-364
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