First Investment: 3 bed 2 bath Townhouse Rental

[Wendy Oliver]

Investment Info:

buy & hold investment.

Purchase price: $145,000
Cash invested: $2,000
Sale price: $184,000

Townhouse (1 of 4 in the HOA)

This was intended to be a buy and hold for a long period of time but were unsure of the stability of the HOA after becoming involved. The property was rented for a year and self managed and then sold. Profit made through rent and sale was ~40k.

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

The price was pretty low so not too scary for a first deal. It also was an easy place to rent out - fairly new, near military bases, lots of natural light and neutral colors.

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

MLS, used a Realtor

How did you finance this deal?

HELOC on personal residence for 25% down payment, 30 year conventional mortgage for balance.

How did you add value to the deal?

about $2000 in painting and back yard clean up - including a small privacy fence (all DIY)

What was the outcome?

Profit made through rent and sale was ~40k.

Lessons learned? Challenges?

Read as much about the HOA as possible prior to purchase.