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Updated almost 5 years ago,

User Stats

2
Posts
1
Votes
Mauricio Rezaee
  • Realtor
  • Mountain View, CA
1
Votes |
2
Posts

Property Management created an Opportunity for Property Ownership

Mauricio Rezaee
  • Realtor
  • Mountain View, CA
Posted

Investment Info:

Single-family residence buy & hold investment in Tracy.

Purchase price: $465,000
Cash invested: $20,000

4 BR 2.5 BA in Tracy, Ca

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

Opportunity drew me to this deal. Tracy is considered an outer suburb in the San Francisco Bay Area. Intense demand has priced me out of the inner Bay Area. Tracy was an area in that I could still afford. I am hoping it continues to see growth as the effects from the Bay Area housing market continue to radiate outwards to the surrounding areas.

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

I managed this property for years prior to acquiring it. I established a great relationship with the owner. I gave great service at phenomenal rates in hopes to position myself in a favorable position to acquire the property. When the time came, I was able to acquire the property for a great price.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

Added value by acquiring property below market value.

What was the outcome?

$100K in equity on closing. Current rent only covers principle, interest, taxes and insurance.

Lessons learned? Challenges?

Despite acquiring the home for $100K under market value, the property doesn't positively cash-flow when accounting for vacancy, repairs, maintenance, and capital expenditures.