Santa Monica condo was my primary residence

[Erin O'Connor Smith]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $292,000

Ocean-front condo in Santa Monica's Ocean Park, originally a primary residence. Steps to the sand. Large one bed one bath 865 sf with one parking space. Third floor with side views of beach and ocean.

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

I bought this in 2001 and lived there for several years until outgrowing it.

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

I used an agent, it was a straightforward deal. I got credits for repairs, so I got it for a few thousand below asking.

How did you finance this deal?

30 year conventional mortgage, paid off in 2016.

How did you add value to the deal?

Letting time and appreciation do their thing. I think the value now is around $865k, making it $1000 per sf. My tenants have been there for 10 years. It is a TORCA building, which means a condo building that was converted from apartments, so although my unit's rent is not under rent control other conditions apply. Cash flow is now about $2790 per month.

Lessons learned? Challenges?

I'd like to move back in someday but I'm not sure that will happen... I said I'd never sell but I'm not sure that will happen. Ocean-front property in Santa Monica is a rare treasure.