Buy & Hold #2 in Mislata town, Valencia state, Spain

[Paolo De Leon]

Investment Info:

Single-family residence buy & hold investment in Valencia.

Purchase price: $65,000
Cash invested: $65,000

Buy & Hold - Mislata, Valencia, Spain

Current project. We decided to purchase this condo because of 2 reasons; #1 it is on the main avenue of Mislata, walking distance to the subway stop and Mercadona (grocery) and #2 potential for adding a lift (elevator) in the future that will add a lot of equity. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section.

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

We found this deal by "Walking for Euros" :D Spain's version of Driving for Dollars.

How did you finance this deal?

List Price: €60,000
Offer Price: €60,000
Sold Price: €60,000
Offer Date: September 27, 2019
Closing Date: November 7, 2019

Condition: Vacant 5 years, electricity and water on, original state, needs rehab
Square meters: 79sqm
Year built: 1954
Rooms: 4
Bathrooms: 1
Elevator: No
Parking: Street
Yearly Taxes: €242
Monthly HOA: €20
Home Insurance: €127

Closing Costs Breakdown
Agent Commission: €3000 (5%)
10% ITP Tax: €6500
Notaria/Gestoria: €163
Total Closings Costs: €9663

TOTAL: €69,663

How did you add value to the deal?

The condo will be totally renovated with new plumbing, electric work, flooring, doors, windows, paint, and appliances. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section. We are planning to turn this into an Airbnb.

What was the outcome?

Rehab on the way. We are expecting to finish the project in July.

Lessons learned? Challenges?

Challenges:
-We could have negotiated the price lower but we offered full due to the competition and fear of losing out.