Hudson NH- First home

[Charles Waitt]

Investment Info:

Condo buy & hold investment.

Purchase price: $193,000
Cash invested: $35,000
Sale price: $299,900

First home for my wife and I. Used FHA loan and lived there for just over a year before we bought a single family home. We then refinanced the condo and paid in to remove the PMI, and rented it out at $1700/month

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

It was the first home my wife and I purchased together

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

On market. Paid asking price of $193,000. It was just what we were looking for and a very reasonable price. It was less than 10 years old when we bought it, in great condition. Seller owned the home with her boyfriend and was going through a break up and needed to sell. Southern NH was far more affordable than the area of MA where we both grew up. The same condo wouldve gone for $300k in MA at that time.

How did you finance this deal?

FHA loan, 3.5% down. refinanced and paid down the loan slightly to remove PMI before renting.

How did you add value to the deal?

It was a primary residence so we got a very low down payment.

What was the outcome?

Sold the condo in october 2021 for $299,900 after renting it for 4 years. Southern NH market caught fire. We were only making about $200/month in cashflow, so taking $141,000 payday by selling seemed like a no brainer. We then used a 1031 exchange to purchase a 9 unit apartment building.

Lessons learned? Challenges?

We had a really easy tenant. In hindsight, I would have managed this property myself instead of having my property manager do it. It was only a few minutes from our new home, in relatively new building with few to no problems, in an HOA that takes care of anything structural. I also wouldve spent another year living there in order to avoid having to do a 1031 exchange to avoid cap gains.