Part 2 of 1031 exchange

[Zane Cress]

Investment Info:

Condo buy & hold investment.

Purchase price: $93,000
Cash invested: $30,000

My second purchase from my first 1031 exchange. I really like the complex and location. Easy to pick up a second unit knowing the first one was cash flowing and I had strong demand for my rental strategy. Came with a tenant paying under market, bought out the last few months of the lease so I could get to work and start cash flowing properly. Full paint, new floors in kitchen and bathroom. Fully furnished, mostly off Facebook marketplace.

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

Cash flow potential.

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

Found on Zillow, negotiated down $5k for an AC unit fix.

How did you finance this deal?

Conventional loan, 20% down. Funds from my 1031.

How did you add value to the deal?

Cosmetic rehab and furnishing.

What was the outcome?

Cash flowed every month once it was refurbished. Investment recouped in 6 months.

Lessons learned? Challenges?

Older places might have water damage in the bathrooms that one catches until a floor comes up.