Condo Buy and Hold Rental

[Greg Wilson]

Investment Info:

Condo buy & hold investment.

Purchase price: $105,000
Cash invested: $20,000

Buy and hold rental, just appraised for $165K. Pulled investment out with cash-out refinancing to purchase next property.

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

It was a short sale and I was able to buy property with instant equity.

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

My real-estate agent found the property. It was listed at $130K. I calculated rehab to be $20k (with sweat equity) and the comps were $150K. I had my agent submit a bid for $105K and the bank accepted it. The unit just appraised for $165K.

How did you finance this deal?

Cash from stock investments.

How did you add value to the deal?

Complete rehab including; HVAC, Windows, Kitchen, bathrooms. I provided all labor for everything but HVAC and WIndows.

What was the outcome?

Unit just appraised for $165K. I completed a cash out refinance and currently looking for next property.

Lessons learned? Challenges?

This was my first rehab and I took way to long to get it ready to rent out. I would hire a crew to complete the rehab next time.

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

Jim Bass Group in Frederick.