Condo fix and sell into 1031 exchange

[Zane Cress]

Investment Info:

Condo fix & flip investment.

Purchase price: $63,000
Cash invested: $20,000
Sale price: $105,000

Bought this as part of a 1031 exchange, the first of two properties. Great second floor condo with vaulted wood ceilings. I was heavy into AirBnb at this time so I fixed it up and furnished it. Got a great deal on furniture from a local hotel that was swapping out all of their beds and desks. Rented it through football season to recoup my initial investment and then got a long term renter paying a premium for 12 months. With the price increases during Covid I decided to cash out of this property and do another 1031 exchange into something I had been wanting closer to the downtown area.

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

Price was so cheap for the potential cash flow. Just needed a little love and some active management.

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

Found this on Zillow and directed my agent to inquire about it.

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

Paint, flooring, furnishing, appliance update.

What was the outcome?

Great cash flow as a short term rental and a fully furnished long term rental. Resold for a nice profit because my cash flow was excellent.

Lessons learned? Challenges?

You never know that the people below you are drug dealers until it's a bit too late and someone calls the cops.