First Home, Buy & Hold

[Amber Roy]

Investment Info:

Single-family residence buy & hold investment in Calgary.

Purchase price: $242,000

A beautifully renovated townhouse unit in the Southwest community of Oakridge.

3BR
1.5BA
1260 sqft

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

This was my first property - purchased at age 21. I wanted to begin building equity from a young age, so that I had options for real estate purchases later on in life.

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

I believe the original price was $250,000, a few years after the market crash. My realtor paid for the inspection, and it was "move-in ready" - a big selling point for me at the time as I worked a corporate gig and didn't have the time or knowledge at that point to renovate the unit.

How did you finance this deal?

I used my first time home buyer option and put down 5%. It was a traditional fixed mortgage at 3.19% for a 5 year term, amortized over 25 years. Renewed after 5 years, for another 5 year fixed-rate mortgage at 3.29%.

How did you add value to the deal?

I have rented out 2/3 bedrooms for the last 7 years to help cover the mortgage and associated expenses. I also completed a renovation project to build value in the unit. Everything has been updated, and the bedrooms are now rented completely furnished to cut down on maintenance. (Scuff marks and dents from furniture coming in and out of the unit.)

What was the outcome?

I still own the unit, and have nearly $70,000 in equity. Once the market in Calgary recovers a bit, I hope to refinance and use the equity to help fund another purchase.

Lessons learned? Challenges?

My biggest challenge has been a super strict condo board. I am not a fan of micromanagement, and the board has become quite antagonistic and prejudice.