1st Home Purchase

[Nicole Gonzalez]

Investment Info:

Condo buy & hold investment.

Purchase price: $355,000
Cash invested: $20,000
Sale price: $500,000

I purchased a 2 bedroom 2 bathroom condo 1488 sq ft. located in Chino Ca.

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

At the time, it was not so much thought of as an investment as it was a place I thought would be perfect to raise my children. It was affordable and in a beautiful area with a great school and a tight nit community.

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

I found a gem of a deal in that the prior owner was looking to sell as quickly as possible to relocate. I offered 2,000.00 over asking and the deal was quickly accepted. I saw so much potential in this property as the porch on the second floor overlooked the local park and it was in a secluded area. The view this property had made it special and the way the sunlight shone into the condo made it a perfect 1st home buy for my family.

How did you finance this deal?

I accepted a conventional loan. Although I did not put down 20% to avoid the PMI, I felt it was worth it to not HAVE to refinance to get out of it. Our interest rate at the time was still very reasonable and it was something I wanted to lock in from the jump.

How did you add value to the deal?

The only upgrade I made to the condo while there was a fresh paint job that was done by my generous brother-in-law FOR FREE (minus materials) and the epoxy I handled myself in the garage.

What was the outcome?

I was able to sell my home in January of 2023 for $500,000.00. I was eager to sell thinking home prices were going to descend. My family outgrew the home and I wanted to pull the equity prior to house prices decreasing. (I was obviously wrong about this as that property is currently estimated to have a value of $540,000.00.) None the less, from start to finish, it worked out in my favor.

Lessons learned? Challenges?

The most important lesson I learned in this transaction is to NEVER SELL OR BUY A PROPERTY IN DISTRESS. There is no benefit financially to a rushed deal.