First Property Purchase

[Brennan Harms]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $1,070,000
Cash invested: $240,000

Wonderfully updated 2 bedroom, 2 1/2 bath townhouse in prime Santa Monica. The ground floor's open floor plan lends itself to intimate gatherings or relaxing alfresco entertaining. Spacious and private backyard patio accessed by modern panoramic doors. Panoramic doors open up completely to the patio. Dark tile flooring, a wood-burning fireplace, and high ceilings. Upstairs, you'll find a generously sized master bedroom with a luxuriou en suite bathroom.

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

The appreciating market is close to the beach. I lived in Ocean Park and Sunset Park (and numerous other areas in LA) before purchasing this home. So I knew this was a great area that would appreciate quickly.

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

I am an agent and found it myself.

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

I have done multiple projects to increase the value of this property, within my control. Currently, I am working on getting on the board of the HOA so that I can speak to other residents and elect for a special assessment to update the exterior of the property and better update the complex. Thus, adding value to all units and modernizing the complex to compete and ride the appreciation wave of the area to the fullest extent.

What was the outcome?

In the works but going well!

Lessons learned? Challenges?

The down payment is obviously one of the largest hurdles. Thereafter I would say that qualifying for the deal (on your own) is tough. Especially for me as I am self-employed. Finally, the most important part of any real estate transaction, you have to get the deal! Working with a diligent agent and making sure all of your documents can withstand the "4-Corners Test" is essential. Everyone is friendly until they are not. Once issues arise, walls follow and the documents are scrutinized.

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

Myself! lol