Below market private deal. Good ROI, but couldn't get mortgage.

[Boris Kryuk]

Investment Info:

Condo buy & hold investment.

Purchase price: $215,000
Cash invested: $230,000
Sale price: $215,000

Building doesn't allow mortgages b/c of high sponsor owned apartments.

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

Strong ROI. Exclusive/Private deal.

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

Found through a relationship

How did you finance this deal?

All cash, unfortunately. But that's okay. My other properties are mortgaged, so having one w/o a mortgage is fine by me.

How did you add value to the deal?

For only $15k, I got the apartment looking amazing!

I gutted and redid the entire kitchen w/ flooring.
I also changed the bathroom vanity and plumbing.
Had the entire apartment painted.

What was the outcome?

Rented w/in a few weeks. Good tenants. Strong ROI.

Lessons learned? Challenges?

Lesson was that top floor units (in buildings) have a great view, sure. But they also bare the brunt of a weak roof. I fixed the ceiling during the renovation, that the building claimed was from years ago. Yet, my tenant had a leak w/in 6 months of living there.... So obviously, the roof was never replaced.