FIRST Investment Property...........Finally

[Ray Rhoads]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $14,500

Purchased a 2/2 Condo in Plantation, walking distance to a high end Shopping Plaza.
Owner didnt want to rent it, but couldnt sell it when she moved because the value dropped.
She rented it for 6 years, when the tenant moved out, she put it for sale by owner. I texted her immediately.
negotiated from $105,000 to $90,000. ARV is about $125,000-130,000.

The plan is to move in to it, fix it up over time, and move out, and rent it out with the LOW PITI/HOA.

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

Location and ease of management.

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

I found it on Zillow i believe 1 hour after it was posted as a FSBO. I immediately texted the seller and began negotiations. After visiting the property with a General Contractor, I asked for $95,000. The seller accepted. After visiting the property again, we got the price down to $90,000 due to ALOT of cosmetic needs. I think negotiating DIRECTLY with the seller was a big asset.

How did you finance this deal?

5% down. We are moving in for a year or so and will fix it up over time since most of the work is cosmetic. Once we move in, our current Condo will rent for $1600, and will cash flow $312/mo after PITI + HOA + Management. Then we will move out and make about $400/mo of this one.

How did you add value to the deal?

Tons of cosmetic stuff.
New Tile in Bedrooms.
New Paint.
New Details like vents, outlets, etc.
New Dishwasher and fridge.
A little electrical work.

What was the outcome?

Moving in!!

Lessons learned? Challenges?

No REAL challenges. Just moving forward!

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

I ALWAYS work with the same Lender, Ryan Beck from APR Mortgage for refinancing and now buying.