Condominium Da Vinci 1131 Ashford Avenue apartment 203, San Juan, PR 00907. Two bedrooms, 2 full bathrooms with 2 parking spaces. The property has 973 sqft.
I purchased in cash on January 24, 2020, and put it under contract on February 20, 2020.
I was scheduled for closing at the end of March 2020 but due to COVID 19 and social distancing, the close has been pushed back to en of April or maybe in May 2020. After purchasing the property I invested in repairs some $8,000 and rent it short term a couple of times grossing some $2,500.00.
The condominium allows short term rentals and these apartments have great demand for investors looking to Airbnb and create cash flow.

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

I own and manage apartments in the same condominium for short term rentals and I'm very familiar with the cash flow potential of these apartments.
The location is one of the best in San Juan (tourist area) close to some of the best hotels ant very important the condominium allows short term rentals.
A two bedrooms, two bathrooms in this location rents from $150 to $300 per night depending on demand. On average this apartment can generate cash flow of $2,500 to $4,000 per month.

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

I knew the owner and had to negotiate the price very aggressively and fast been that there is a high demand for these apartments.
The owner was very difficult and wanted a lot of concessions (me paying all closing cost, me paying owed property taxes, and the deal had to be in cash)
I made a huge effort and gather the money and did it, feeling positive I was going to be able to sell it fast at a good profit.

How did you finance this deal?

I had just sold another property of mine and had some money for a renovation of a different property I own but decided to put the renovations on hold for some time until the sale of this apartment.

How did you add value to the deal?

I had to remove a lot of garbage (literally) that the owner had inside the apartment, replace 3 AC (one on each bedroom and one in the living room at a cost of $4,500), have the apartment clean and fully painted in white. I had to fix the electrical system.

What was the outcome?

I showed the property to 5 or 6 potential buyers and had 2 or 3 offers, I took the one that was full price.
The buyer requested an appraisal and inspections and then gave me a 6% deposit in escrow.
The loan has been approved and we are now waiting for social distancing to conclude to be able to close on the sale.

Lessons learned? Challenges?

In any business, there are always things that no one can predict ex. ( 9/11, Katrina, Maria and Irma stormes and COVID 19). I have to always plan for the catastrophes that might occur without any warning. In this particular case, I have a deposit in escrow of $17,100 and enough cash to weather this storm.

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

I did work with a local bank for the loan for the buyer, someone I know for years that help the buyer to obtain the loan and facilitate the process for my buyer. Angelo Ortiz from FirstBank is a great professional and he works really diligently to make sure the buyer has all necessary documents and financial information to get qualified for the loan. Angelo is also a very approachable loan officer and it is easy to talk to him and to get him on the phone.