A Safe Bet or a Bad Use of Cash?

[Saunya Wenger]

Investment Info:

Condo buy & hold investment.

Purchase price: $161,000
Cash invested: $165,000

I bought a two bedroom condo that I furnished, updated the appliances and replaced plumbing fixtures. I am using it as a short-term rental for travel nurses or professional students at the nearby university.

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

I wanted to have a tenant base that was professional even though this home is located in a college town. I also wanted to be able to stay there some because my kids are attending the university.

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

A realtor that I know. I made a cash offer that was lower than what I would have offered it I had needed a loan.

How did you finance this deal?

I paid cash due to some funds I received from a life insurance policy (sad story). I may refinance it and pull cash out to buy another property in the next year.

How did you add value to the deal?

I made small upgrades like a few kitchen appliances and bathroom items and water heater. I plan to do more over the next year, but it is already in good shape. I am not able to do the skilled work right now but I have some skilled people I can call.

What was the outcome?

I have had lots of requests for this rental by graduate students, medical students, and travel nurses. I had to pause the listing for a while. At the time I bought the condo I paid the highest in the neighborhood. Since then another sold higher and our comps are all rising.

Lessons learned? Challenges?

Be ready for someone to accept your offer and have a plan to hit the ground running when they do!

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

Jeffery Oakes at Greater Impact Realty is knowledgeable about the area and working with investors, as he is a property investor himself.