First Investment Property-

[Matthew Morrow]

I am cautiously eager to enter my first deal as an investor and looking for some guidance.

My situation is fairly unique. As a full-time pilot on corporate jets, I’ve recently had an interest in real estate. I obtained my real estate license last year, and have been operating as an agent for the last several months gaining tons of experience. My goal however is to not solely buy and sell houses but to invest in properties for passive income into retirement.

I have an opportunity to buy a local condo from an elderly person who is purely looking to offload it. After doing a CMA, I approximate the value to be around 120-125k. She states that she would be willing to take 95 to walk away. This woman is a previous investor and real estate agent herself, but is retired. The property is in good condition with a new roof windows and updated appliances, built in the late 1990s.

The condo is in a nice and desirable area, and has long-term established tenants paying 1450 per month plus utilities. For Face value these numbers put me at over 20% cap rate in year 1.

Now the baggage:

The homeowner is telling me that previous people have had issues obtaining financing on it because one person owns seven of the remaining 10 units excluding hers and 2 others. that majority owner apparently has a very negative local reputation. I have read situations where this can affect financing. The condo association in the past was in significant financial trouble, among other things. In 2017 the situation improved after lawyers got involved. This owner just wants out.

My question is-pending review of the bylaws and situation of the condo association, this seems like a slamdunk first investment. Can any of you offer advice on on condos or the situation in general.

Thanks

Matt