57sqm, 3 beds, 1 bath, lift
List Price: €64,000
Sold Price: €53,000
Offer Date: January 24, 2018
Closing Date: March 14, 2018
Condition: Vacant, full renovation needed

Agent Commission: €3210 (6%)
9% ITP Tax: €4770
Lawyer Fees: €1000
Notaria/Gestoria: €874
Total Closings Costs: €9854

Rehab (Reforma)
Labor: €21,145
Carpentry (kitchen, cabinets, side tables): €1900
Windows (6 windows, 2 doors): €1771
Materials: €12,775

TOTAL PURCHASE + REFORM = €96,774

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

My wife and I were looking for distressed or vacant condominiums in Valencia. These types of condos offered the cheapest price points with lots of room for negotiation. We chose Mislata because it's in the top 10 most densely populated towns in Europe with a population of approximately 54,000 in just 2.1 square kilometers which made the average rent very high. Mislata also has 2 subway stops, a growing commercial area, and new condominium projects.

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

At the time we were still living in Las Vegas, Nevada. We found this property online through "Idealista" which is one of Spain's popular real estate search engines. We got in contact with the agent and had my wife's mom view it for us. They sent us the video, negotiated the terms over the phone then we sent an international wire transfer to the broker to hold the property. We closed the deal when we moved to Spain.

How did you finance this deal?

This was a cash deal.

How did you add value to the deal?

Full renovation; new plumbing, electric work, paint, and flooring. The Spanish tile is so cheap here and so beautiful! We chose a Meditteranean design for the tiles in the balcony and bathroom to give it some character!

What was the outcome?

Overall it was a success! We got a good deal on it because the sellers were desperate to sell. Currently (March 2020), the condo is now worth €120,000. The property will soon be listed for rent for €700-750. The expected cash flow minus expenses are €600-650.

Lessons learned? Challenges?

We learned a lot from this deal. The basic process is patterned after the states but just like any international market, it has its own quirks and laws to navigate. The rehab process was a great experience. We found an awesome contractor (reformista) who was recommended to us by a family friend in Spain so we lucked out on that one.

Challenges?
-My poor wife had to be my walking Google translate! (I'm still learning Spanish)
-SLOW. Systems here are slow.
-Very expensive acquisition costs.