Buy & Hold Condo

[Joe Arteritano]

Investment Info:

Condo buy & hold investment in Englewood.

Purchase price: $55,000
Cash invested: $10,000
Sale price: $68,000

Purchased this 1,000 sqft 2bdr, 1bth condo with $5,000 down, owner financing . This was a 5 year interest only loan at 10%. I lived in the condo for a year while trying to sell my home in San Antonio. Once the home in San Antonio sold, I bought a home in Houston. I then refinanced the note with the owner, converting the loan to a 15 year mortgage with another $5,000 down, and rented the condo for $980/month the first year, and $1,000/month the second year, at which time I sold it.

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

I had been laid off for three months, and was offered a job in Houston to start within a week. I had to find a place to live.

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

I found the deal through a neighbor in San Antonio, who's father owned the condo and wanted to sell. It was vacant at the time. Since I was on a short time line, after looking at the property, I offered the asking price, with $5,000 down and 100% owner financing as long as I could take possession within the next two days at $500/month rent. All rents due prior to closing would be credited toward the down payment. We closed in two weeks.

How did you add value to the deal?

Upgraded the AC, installed new carpets, new kitchen appliances, and new paint on the interior.