Cookie cutter Buy and Hold condo fixer in CA.

[Sebastian Marroquin]

Investment Info:

Condo buy & hold investment.

Purchase price: $292,000
Cash invested: $45,000
Sale price: $430,000

Easy Breezy
Bought condo in 2018 as soon as I could get approved to buy. We did renovations on the entire inside with about $20k, bought the condo with a 5% mortgage primary residence at around 5.5% interest rate. Then we refinanced at 4.5% and then again 1 year later at 2.9%
Our mortgage is $1750 per month (HOA included) and we rented out for $1950. Rent going to $2050 as of Jan. 2023. The thought is to sell it at the end of next year and take advantage of the primary home tax exemption (2023 will be 3 years after living in the property for 2 years). The condo is now worth about $430k and maybe $400k by next year. We will see :)

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

The only thing I could get approved for. :)

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

On MLS: and represented myself as the buyer's agent. I earned the 2.5% commission and negotiated about $8k credits.

How did you finance this deal?

5% conventional loan

How did you add value to the deal?

Renovated the inside : $20k

What was the outcome?

Lived in it for 2 years while saving for our next purchase. Rented it out to Nurses (long term tenants). and Cash flow a bit while growing in value over time.

Lessons learned? Challenges?

Lessons in renovations maybe. Nothing fancy. Just having enough money in the budget incase something happens. Nothing happened...
I did get married that year and was on vacation with the 'Boys' while in escrow for this one... Wife to be was not too happy...
Get good contractor for the job and make sure you put the details on paper.

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

Worked with a great lender I have worked with over the years. I was the realtor and you can do your research, but I think I'm pretty good. :)