2bd/1ba Condo in Essex

[Micah Paroline]

Investment Info:

Other buy & hold investment in Essex Jct.

Purchase price: $103,000
Cash invested: $1,500

I bought a 2bd/1ba condo unit. I lived in it while I repaired it then got a room mate I eventually moved out and went to college for a while. At this point I began renting it out entirely.

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

I grew up helping my dad flip houses and manage rentals.

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

My dad had his real estate license. I worked with him to use his data base access.

How did you finance this deal?

I had been investing in mutual funds as a kid. I took money from that to make my down payment. the seller agreed to pay the realtor fees and closing costs as well as give me $3,000 back for repairs. I used a first time home buyers loan

How did you add value to the deal?

Originally the property was a low grade unit with white everything. The first thing I did was paint and make it look nice. that helped attract better tenants. From their I upgraded appliances and have done some remodeling between leases.

What was the outcome?

Currently making $1300 in gross a month, about $400 in Net.

Lessons learned? Challenges?

I learned to give eviction notice as soon as a tenant missed their first rent payment. If they get caught up, good for them, If not the process is started and I won't loss much more money.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I would recommend my dad but He hasn't been very active as a realtor of late.