My first deal - studio condo in Cranford NJ!

[Pete Bigit]

Investment Info:

Condo buy & hold investment in Cranford.

Purchase price: $105,000
Cash invested: $26,250

Studio condo unit in Cranford, NJ. Big developments in the area going up, as well as nearby trains to NYC made this an attractive purchase for me.

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

I was looking for a less volatile investment than equities

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

Friend of mine was going to buy this property in order to prevent his grandfather, the tenant, from having to move upon sale. He presented the deal to me, I paid him a finders fee in exchange for him being my property manager and its been way too easy of a first real estate investment. Cash on cash return is just under 10%. And its an excuse to get lunch with my friend once a month to pick up my rent.

How did you finance this deal?

25% down, traditional financing through Rocket Mortgage

How did you add value to the deal?

Nothing yet, upon vacancy I plan on rehabbing bathroom and carpeting. Most likely will put back on the market to rent for +200-300 more / month

What was the outcome?

Still holding and cash flowing 250/month

Lessons learned? Challenges?

How to deal with mortgage companies, experienced a closing. Other than that, not too many applicable real estate lessons from this transaction.

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

Rocket Mortgage was easy to work with in completing the financing.