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Updated over 4 years ago,
2018 Buy and hold in Provo
Investment Info:
Townhouse buy & hold investment.
Purchase price: $186,000
Cash invested: $36,000
This was a new construction townhouse 3bed/1.5bath with a 2 car garage located in Provo. The cash flow isn't great on this property, but it has been easy to rent with no maintenance expenses in the last two years. The appreciate has been incredible over the last few years. The current tenants are moving out at the end of this summer, and these have increased their value to about $245,000. We plan on selling it after they move out and doing a 1031 into a bigger multi-unit property.
What made you interested in investing in this type of deal?
I like the low maintenance that townhomes have to offer with no upkeep to the outside of the property.
How did you find this deal and how did you negotiate it?
We found this on the MLS. It was one of the lowest priced townhomes at the time and prices were increasing fast. We got in on phase 1 of the project and within a few weeks, they were all reserved and the next phase released with a price increase of 20k!
How did you finance this deal?
Just a traditional 30 year fixed mortgage
How did you add value to the deal?
We did upgrades to the cabinets, the countertops, and had some vinyl plank flooring installed.
What was the outcome?
We plan to do a 1031 into a larger multi-family property at the end of this summer and put the equity we have gained into better use.
- Amy Kendall