A condo that is actually cash flow positive

[Janea Boyles]

Investment Info:

Other buy & hold investment.

Purchase price: $47,000
Cash invested: $47,000

I own a one bedroom condominium in a complex that was built in 1975. It's an interesting entity with an onsite management team and maintenance staff. I also live on the property in another condo so I am very familiar with the staff. The HOA fees are considered to be high for the rates in this market. However, I find the management and maintenance staff to be outstanding and it's worth every penny.

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

I lived on the property and knew it was well managed. I was familiar with the costs of living there and knew it would cash flow.

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

I bought this deal off market with the help of my outstanding real estate agent. She is well connected in the market and also is a rental property investor. She connected me with someone who was ready to sell this investment and we negotiated a cash deal with quick closing.

How did you finance this deal?

Cash.

How did you add value to the deal?

This condo was turn key. I had to do some basic repairs when the tenant vacated.

What was the outcome?

The property is leased and is cash flowing. There is a wait list for one bedrooms in this community and I knew it would lease quickly.

Lessons learned? Challenges?

My one challenge with this property seems to be that lot of college students live in this complex and it tends to turn over quickly. Most of the students only seem to stay for one year. The turnover costs are high and eat up a lot of my cash flow. I’ve owned the property just under two years and am on my third tenant.

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

Yes. Angie Pickett in the Chattanooga market is fantastic. She helped me buy the condo I live in as well as the investment condo that I own.