First buy to take advantage of a demanding market

[Andrew Elsken]

Investment Info:

Other buy & hold investment.

Purchase price: $138,000
Cash invested: $500

Bayview West Condos near the down town area. Bought looking to live there for a year and now, after moving out, is being rented out. Military makes for easy renters (usually). I am interested in seeing how it plays out after the first year.

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

Easy to rent out. Bought below market value. Near Naval base

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

Word of mouth, talked to owner before it went to market

How did you finance this deal?

VA loan. 0% down

How did you add value to the deal?

Seller payed closing costs

What was the outcome?

Currently renting out for $1200 a month. No shortage of tenets.

Lessons learned? Challenges?

It is hard to make profit from renting in the area. $1200 is the current rent and only yields $200 monthly cash flow. Must work to get a good tax break. There are many ways with a condo, i.e. HOA dues and maintenance.