Buy and hold mid term rental

[Andrew Tyree]

Investment Info:

Condo buy & hold investment.

Purchase price: $410,000
Cash invested: $82,000
Sale price: $650,000

I represented buyers who are musicians from Canada who wanted a place in LA for when they're here and wanted to rent it out when they're gone. We found a one-bedroom in Studio City with great bones that was way under market, bought it for 410, put about 50k into rehab and now it's worth about 650k. They rent it out part-time and it pays for itself and cashflows while they're not here. Great success!

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

I love representing buyers who want to value add to their property. I arranged for contractors to rehab the property and their apartment is now worth much more than when they bought it and they are able to rent it out part-time to cover the mortgage.

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

It was on the MLS for a while. The pictures were terrible, the last owner was a bit of a horder.

How did you finance this deal?

Traditional 20% down.

How did you add value to the deal?

Took out the junk, and rehabbed the whole place, it looks amazing now.

What was the outcome?

They have a home they can live in when they're here and can rent when they're in Canada.

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

I was the agent and I have great lenders and contractors who helped along the way!