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Updated over 1 year ago on .
![Kyle Hawkins's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2707640/1680282819-avatar-kyleh569.jpg?twic=v1/output=image/crop=456x456@0x18/cover=128x128&v=2)
Off Market, Cash Flowing Condo Reno, Buy & Hold
Investment Info:
Condo rental, forced appreciation buy & hold investment.
Purchase price: $195,000
Cash invested: $48,500
Bought an off market, 2 bed 1 bath condo that was outdated and distressed, as it sat vacant for a number of years and was delinquent on property taxes and other expenses. Spent 3 months renovating it - all new LVP, remodeled the kitchen, added tile backsplash and quartz countertops, new paint and baseboard heat units. All costs all in was 25% down payment and 5-6000 in remodeling costs.
What made you interested in investing in this type of deal?
This was my first investment property. Buying it off market allowed me to purchase it and have instant equity, and renovating it forced further appreciation and pushed up the rents and cashflow. It was at a more affordable price point and overall the numbers made a lot of sense, and while it was scary to jump in at the time it has proven to be an incredible investment.
How did you find this deal and how did you negotiate it?
Found it off market from another agent in my market. It had sat vacant and was distressed, and the seller needed to sell quickly.
How did you finance this deal?
Financed the deal through a portfolio loan though a local bank. The property was a non-warrantable condo, and would not have gone conventional. This meant I had to put significantly more down on the property (25%) but thankfully the bank was great to work with.
How did you add value to the deal?
Removed all the outdated furniture, gutted it, new LVP, paint, electrical panel, baseboard heaters, sinks, and remodeled the kitchen with quartz countertops, undermount sink, and subway tile.
What was the outcome?
Was able to rent the property for 250 more monthly than other similar units, and forced about $45,000 in appreciation
Lessons learned? Challenges?
I learned so much about the costs and process of remodeling a home. Remodel jobs will take longer and cost more than you originally think - especially when you save money by doing the work yourself, only working nights and weekends will push deadlines back.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I used First Bank and their portfolio product is fantastic. I am an agent and was able to represent myself
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