Buy/Hold Condo Purchase (1st rental property!)

[Richard Goore]

Investment Info:

Condo buy & hold investment.

Purchase price: $270,000
Cash invested: $55,000

2 Bedroom, 2 bath condo, 2 stories, nice centrally located complex with pool and small gym amenities. Purchased to rent to a family member. Property has gained in value but we are a wash with expenses and rental income.

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

It made sense based upon the location.

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

Found on the MLS. Since I was purchasing for myself the only deal I got was to reduce the price by the amount of the commission I would have received. It was more about the location, size and amenities of the unit.

How did you finance this deal?

Standard conventional loan. This was for a parent so we were able to purchase as an owner occupied and not have to put 30 % or more as we would have if it was a loan for an investment property. This type of loan is available for a parent, disabled relative, and one other I can't remember.

How did you add value to the deal?

Purchased at the beginning of the pandemic. Haven't done anything to the unit except add can lights in the primary bedroom. I have been lucky with the run up in property values.

What was the outcome?

Still own it and is rented.

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

Yes, myself!