Passive Income even after Selling our Condo!

[Karl McGarvey]

Investment Info:

Other note investment investment.

Purchase price: $127,000
Cash invested: $77,000
Sale price: $240,000

Purchased our first investment property in March 2020, a beachfront condo, to be used as a STR. A week later COVID shut down the world, and we thought we had made the biggest mistake of our lives. Fast forward two years later, we used creative financing to payoff the loan and list the property for sale for almost double our purchase price. We seller financed the deal to the new buyers so we are now getting the same ROI, with no tenants. Completely passive!

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

Completely passive income over the next few years, allowing us to make money on our money!

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

We are Realtors, used market knowledge to choose the right time to sell.

How did you finance this deal?

Seller Financed. 30 years fixed @ 6%. This property was sold two weeks before interest rates jumped so we lost out on a half a percent interest by pulling the trigger slightly early.

How did you add value to the deal?

None.

Lessons learned? Challenges?

While its great to try to time the market, you cannot be salty about small details when the overall scenario is a huge win for everyone involved.