Modern Mountain Condo - Bend, OR - 2019

[Nate Bell]

Investment Info:

Single-family residence buy & hold investment in Bend.

Purchase price: $190,000

This is a 1 bed/1 bath condo in a resort in a very desirable town in Central Oregon. A custom home builder bought it and lived in for a year while his own dream home was being built, and he remodeled the condo while he was in it. I purchased it site unseen and fully furnished for $30K under market value, and we are successfully renting it on AirBnb.

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

We are able to use the condo in a recreation destination frequently, and it's paying for itself in the meanwhile.

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

I put an offer on it as soon as it came up on the MLS, and it was rented on AirBnb at the time so no one could get in there and see it. Based on the photos and description, I made a leap of faith.

How did you finance this deal?

Hard money bridge loan, then converted to private lender. This turned out to be a "non-warrantable" condo because the resort owned too high of a percentage of the units in the development. So it wouldn't qualify for Fannie/Freddie. RE agent lied about it being warrantable- I did ask, and he claimed he had sold several units with conventional financing. So I had already bought it with hard money before I figured this out during my conventional financing process. VERY stressful.

How did you add value to the deal?

Turnkey

What was the outcome?

Short term rental on AirBnb. Cashflowing a couple hundred a month on average, with definite peaks in the summer.

Lessons learned? Challenges?

ALWAYS get the "condo certs". I'm glad I own this, but if I had known it wasn't warrantable, I wouldn't have moved forward. Other offers were flowing in after I got it under contract, and people here can afford to pay cash at this price point, so I'm not worried about resale, but this could be a huge problem in another location. Live and learn, and I'm lucky I squeaked through this by finding a private lender willing to give me a fixed rate for 30 years.

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

Aaron Fulcher, RE agent with Base Camp. If you like being lied to, he's your man.