My first real estate investment!

[Alia Elnahas]

Investment Info:

Condo buy & hold investment in Alexandria.

Purchase price: $180,000
Cash invested: $3,000

Converted this studio unit into a furnished rental. Was originally meant to be used as a short-term/vacation rental, but covid hit as soon as we were launching so we switched gears and quickly leased it for a 2-year contract.

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

It was affordable, in a great location, and small enough to improve/furnish on a budget.

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

Market was very competitive, found this one off market by asking the agent of another unit I was interested in (that had quickly gone under contract that same day) if they had any others coming soon. I was able to take a look & place an offer before they went active.

How did you finance this deal?

FHA loan. I resided in the property for the first year and then rented it out and moved on to another property.

How did you add value to the deal?

Put in nicer appliances, some modern tech tools such as smart detectors and thermostats. Most of the value was placed through the furnishings/stagings to make the space feel like a cozy hotel room.

What was the outcome?

2 year lease agreement within a week of posting the property for rent despite the start of covid lockdown.

Lessons learned? Challenges?

FB ads/marketplace proved far more efficient than craigslist/some of the other platforms I've used for rentals in the past.

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

I was the agent and of course I recommend myself ;)