Fixer Condo, Tenant Cash for Keys, rehab and hold.

[Rob Massopust]

Investment Info:

Condo buy & hold investment.

Purchase price: $400,000
Cash invested: $15,000

Fixer Condo, Tenant Cash for Keys, rehab and hold. They should rethink this for acquisition and disposition are seamless and always available inventory and easy to rent and sell.
When you add a furnished component, you outsize your gains and have very little maintenance and headache to worry about. Many investors balk at the HOA and such, I say go for modest cash flow and higher appreciation and sell or exchange every 2-3 years. Great BRRR for starting investors as owner occupied

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

Condos are easy to buy, easy to fix and are the easiest to rent.
For many investors condos are not their first investment choice. They should rethink this for aquisition and disposition are seemless and always available inventory and easy to rent and sell

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

Listed by District Attorney as a probate. Uncooperative Tenant held up estate and sales. I offered to solve everyone's problem and came up with a solution that worked out for all - and got a great deal.

How did you finance this deal?

Conventional
Had to fix some heavy drywall issues in escrow and with the tenants permission in order to get the appraiser to sign off on the deal.
Lender was ok.
I fixed it out of pocket before we closed and figured it was worth the risk

How did you add value to the deal?

Negotiating with Tenant - cash for keys and 60 days to relocate
Fixed bathroom during escrow
Helped with estate sale
Fixed up some plumbing and electrical.

What was the outcome?

Great complex - Gaurd gated community, easy access to amenities and freeways
Upside of about 25% plus - depending on hold time

Lessons learned? Challenges?

Got a little busy and tied up with holidays, got sick and slowed things down

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

District Attorney's Agent
Lender and Handyman