Find the tenant first!

[Jose Miller]

Investment Info:

Condo buy & hold investment.

Purchase price: $43,500

A cozy 2BR/1BA condo with an in-unit washer/dryer and bamboo trees on the patio. The complex had a larger share of domestic problems, but lots of new builds in the area meant that my unit would increase in value.

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

The beauty of this deal for me was that I had a renter ready to move-in. A very good friend was going through a divorce. She had no credit, no cash, but a good job and I knew that she was tidy.

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

My friend and I went around with a realtor until we found a place that she liked and that made my numbers work.

How did you finance this deal?

100% of this deal was financed through a family loan, interest-only. The loan was secured by my 401(k), which I could take out a loan on at any time.

What was the outcome?

My friend stayed in the unit, keeping it clean and tidy, for 6 years.

Lessons learned? Challenges?

A washer/dryer in-unit is a must!! And, if you find a deal, buy as many units in the complex as possible.

[Jose Miller]

This is in Mesa, AZ. Prices have changed quite a bit, as my unit was just appraised at $160,000 (for my cash-out refi). With the HOA at $200 per month and rent at $1100, it might not cash-flow as high as you're hoping. But, good luck!! Let me know if I can help you out.