Manassas,Condo Learning Still 2020

[Miguel A Ramirez]

Investment Info:

Condo buy & hold investment.

Purchase price: $147,250
Cash invested: $8,500
Sale price: $150,000

Middle unit out of three story unit. Purchased in 2019 when relocated for work. Currently renting for 1,450 negative cash flow, bumping to 1,600 to cover monthly mortgage and HOA fees.

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

I was moving from CA to VA in 2018 did not want to pay for someone else's mortgage. Ended up renting in 2020 to previous colleague able to not pay for property management and only focusing on mortgage and HOA.

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

Worked with realtor. Not a great deal because of HOA fees yet but hoping to pay off 20% or 25% of VTL and refinance solely to lower monthly payment and keep it. I am less than two blocks away from a Greyhound station; bus and train, and close to bus stops. NOVA seems to be almost recession proof which is always ideal since I plan to hold on to this unit as long as it pays itself off.

How did you finance this deal?

Used FHA loan hoping to refinance once I am 20 to 25% to LTV to lower payment and hopefully see cash flow. Pay additional Principal to help in 2021 hoping to refinance in 2023.

How did you add value to the deal?

Nothing yet, hoping to remodel in 2025 and rent out same price. Goal is to keep long term tenants after renovation.

What was the outcome?

Currently break-even until current tenant decides to leave then I will increase rent to 1650 and use PM and include vacancy charge for myself.

Lessons learned? Challenges?

Stop trying invest in Condos all though it is easier for Preventative maintenance such as Roof but still have to take into account AC unit, pluming, etc. Using this as opportunity to learn more about investment.

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

Not truly recommend because used Realtor and they just kept calling me until I decided to go look at units. Have always been focused on 2 bed 2 bath for any kind of home/condo/etc.