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Updated about 4 years ago on . Most recent reply
San Diego Condominium
Investment Info:
Condo buy & hold investment in San Diego.
Purchase price: $318,000
My wife and I bought this property three years ago as our primary residence, then moved out in march of this year. Refinanced it as a rental from 3.125 down to 2.25%!!! We are cash flowing $300 a month and it was appraised this year at $430k!
What made you interested in investing in this type of deal?
It started out as our primary residence. Since San Diego is military heavy, we decided to keep it and rent it because real estate investing has always been our dream! (My wife is a real estate agent to boot)
How did you find this deal and how did you negotiate it?
Searching through the MLS, we failed to negotiate well because we thought it would appraise for less, so we paid $20k more than we wanted. Talk about a first deal mistake.
How did you finance this deal?
Shout out to Loan Depot for the insanely good VA streamline Refi! Called 4 other lenders, two said they could match the deal but not beat it, the other two couldn't even match it! (2.25% with ZERO closing costs)
How did you add value to the deal?
My wife and I are hardcore DIY'ers. Between the two of us, we have done everything from floors, to custom cabinet builds, baseboards, drywall, electrical, minor plumbing, built a mantle. So in this rental, we painted the cabinets and put new hardware on, installed new countertops, added built in closets, and act as the handyman/woman to reduce costs.
What was the outcome?
Four rental applications within three days of it being listed! $2300 rent, $350 HOA, $1645 mortgage and escrow.
Lessons learned? Challenges?
Deal negotiating needs improvement! Also, my property manager skills needs improvement! While we are legally good to go as landlords, I would like to develop our "product" more. What that means to me is to become more professional and plug and play, which will become more important with the more properties we acquire.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My wife being a real estate agent helped us cut out a whole party. I would definitely recommend Loan Depot! I can give contact info upon request!