DU Rental-Strong Cash-flow and Rising Value

[Joe Nessinger]

Investment Info:

Single-family residence buy & hold investment in Denver.

Purchase price: $200,000
Cash invested: $60,000

Found a 2 bed 2 bath condo located very close to the University of Denver. Property is a 2 bed 2 bath condo but the interesting part is that each bedroom is a master suite. I am currently renting this property to two graduate students at the University of Denver.

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

I bought this deal because I am looking for cashflow. This condo is also located next to a new development where they are building a 10 unit apartment building. Each unit in this building is going to be selling at 500K+, which means my condos value is going to rise significantly

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

Found this deal through an agent on the MLS. It was a tired older lady that owned this home so we were able to negotiate the price down.

How did you finance this deal?

We financed the deal using cash.

How did you add value to the deal?

The condo was in pretty rough shape. We came in and put new windows, floor, upgraded the bathroom, kitchen, painted the whole condo and put new doors, fixtures and all else. It was a full cosmetic job.

What was the outcome?

Condo is rented out and we plan on keeping this property for 5-8 years.

Lessons learned? Challenges?

Rehabbing even a small condo can be expensive.