Rental Property Purchased after a Fire damaged the building.

[Martin K.]

Investment Info:

Condo buy & hold investment.

Purchase price: $104,000
Cash invested: $15,000

Purchased in 2018 after a fire had damaged the building 2 years earlier; due to lack of capital was only able to purchase one unit, and am always on the lookout for situations similar to what had occurred with this building.

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

The area is nice and was relatively cheap at the time, I was aware that people were looking to move into this part of the metro area and was aware that there were significant tail winds that would propel demand for rental properties in the area.

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

I live in the area and noticed that there were units available for sale after a large fire had damaged the propety.

How did you finance this deal?

Standard mortgage from a bank.

How did you add value to the deal?

Small amount of rehab was done, and no one was interested in bidding on these buildings due to an elevated HOA which lasted for the first few years due to the increase in insurance.

Lessons learned? Challenges?

Find ways to raise capital, actively network and be ready to talk to people. When situations arise where you can pay in cash you will find great deals.