First Buy & Hold

[Tamara Stanton]

Investment Info:

Condo buy & hold investment.

Purchase price: $235,000

Fantastic 2 bed/ 2 bath condo just a short walk away from Herndon's Historic Downtown. Beautiful hardwood floors. Kitchen renovated to open to living room and provide eat-in bar. Balcony overlooks courtyard. Large Master bed room with newly remodeled bathroom. 2016 Hardwood floors, Open Kitchen concept and bar 2017 - Microwave, Range, Dishwasher, Washer & Dryer 2018 - New HVAC unit 2019 - Master Bath renovation. Easy access to the Dulles toll road, new Herndon Metro Station and bus routes.

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

Looked for a home I could "house hack" or a home I could live in for a few years and then eventually rent out. I liked that it was two bedroom two bath and in a growing neighborhood close to the airport.

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

Worked with a Realtor. Agreed to seller rent back request and no inspection because I was in no hurry to move in. I later paid for an inspection after closing. I also think they agreed to go with me because I was genuinely going to live in the property and take care of it. As opposed to the many traditional investor offers.

How did you finance this deal?

Used first time home buyer opportunities to secure low closing costs and 1.87% interest rate. Took advantage of capital gains during covid bull market.

How did you add value to the deal?

Further renovated the kitchen. Cost less than $500 to install updated lighting and backsplash. The property was basically turn-key.

What was the outcome?

Found a great tenant and the rest is history.

Lessons learned? Challenges?

The property requires consistent maintenance as if you live there. It's important to make sure ROI factors in maintenance and other costs. Making sure I understood my HOA bylaws and condo insurance. The property is connected to other properties and things happen to other units that could affect mine and vice versa.