Northglenn Townhouse Deal

[Gabriel Kennedy]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $134,000

This is a 3 bed/2 bath that I purchased as my primary residence in 2010. It was my first house and I could barely afford it at the time.

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

The price of houses had decreased in the area and I was able to afford a house. So, I decided to purchase while prices were low and put my money toward my own mortgage instead of someone else’s.

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

I looked at lots of properties over 4 months or so and submitted full price offers on probably 12 properties in that time with all being outbid.

How did you finance this deal?

I got an FHA loan and only had to put 3 percent down.

How did you add value to the deal?

I had a roommate. So, it was a house hack and they helped pay my mortgage. I have since remodeled the property and with the market the way it is, the price has skyrocketed.

What was the outcome?

Now this property is a long term rental and we’ve had the same renters for the last two years and this week they will be signing another 2 year lease.

Lessons learned? Challenges?

At the time this was very challenging. I made $16/ hour and had a hard time paying my own rent and saving for the down payment. I was able to pull it off and now that property has a ton of equity that will be funding future deals. Even though it was hard, that deal 12 years ago is a home run today. To any new investors, if you can get cash flow or have someone else paying your mortgage, the deal gets better and better as you pay down your principal and rents increase.