2/1 Buy and Hold Apartment Unit.

[Tyson Head]

Investment Info:

Other buy & hold investment in Vernon.

Purchase price: $164,000
Cash invested: $40,000

My wife and I sold our live in flip and purchased a 2/1 apartment unit of 1000sq'. The couple that sold us it wanted to stay for a few months so the owners turned into our new tenants. Cash flow of $200 per month and appreciation of $30k in the first 1.5 years. It is working out very well for us so far.

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

Positive cash flow, future appreciation and learning more about dealing with tenants.

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

MLS and wrote an offer 1 hour after viewing. Owners took our offer on the condition that they could stay for 6 more months and rent off us.

How did you finance this deal?

Cash down payment from the profits of a live in flip and traditional 20 year mortgage. Nothing creative.

How did you add value to the deal?

Didn't add any value. There was a recent reno before we purchased it. The apartment complex put out a bunch of money and updated all the common areas and this made the appreciation jump dramatically.

What was the outcome?

All positive so far. Will need to install a new fridge and stove in the next couple of years though.

Lessons learned? Challenges?

Unit is not in the greatest neighbourhood which keeps rents down and does not bring in the most reliable tenants. Lots of screening!

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

Just my trusty real estate agent that I have worked with in the past.