Securing a Two Unit Condo Building

[Bryant Mortimer]

Investment Info:

Condo buy & hold investment.

Purchase price: $692,500
Cash invested: $55,377

Long term buy, hold, and rent.

Original Purchase: July 30, 2021

-Purchase Price: $692,500 (net $677,500)

-Seller Credit: $15,000

-Closing Costs: $24,065

How I Financed Originally: Traditional Financing.

-5% Down Conventional Financing ($34,625)

-$657,875 Loan Amount - 30 Year Fixed

-3% Interest Rate

-Monthly Payment: $2,774/month

-Appraised Value: $712,000

Current Rents: $1,200 (A friend occupies the 2nd room. The room is currently under rented at $1200)

I moved into this unit after securing a long term (16 month) renter for the upper unit. Ideally I would have continued to live in the upper unit and rent the lower unit, but due to putting less than 20% down I was required to occupy the lower unit as my primary residence to avoid mortgage fraud. After a year in place I am now looking to move and rent both units in the building. Next, I will breakdown the building as a whole.

Resale Date: I do not plan on selling this unit

-Current Loan Amount: $644,140

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

Took the opportunity to purchase the unit which gave me the entire building, including power over the Condo Association.

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

Purchased off market.

How did you finance this deal?

Traditional Financing

How did you add value to the deal?

As a Realtor I reaped the benefits of purchasing a property as a licensed agent.

Lessons learned? Challenges?

Water for a 2 unit building can really add up.