First Home/Condo in Lakeside

[Michael Shields]

Investment Info:

Condo buy & hold investment in Lakeside.

Purchase price: $125,000

Purchased this condo back in 2013 to live in. This was my first ever home purchase and less than two years later I turned it into a rental property. Learned a lot and overcame many fears about becoming a landlord and real estate investor. I hired a property manager because I wanted to be as hands off as possible and it has worked out nicely for me in the long run. The property has more than doubled in value and it cash flows every month, which is all I really wanted.

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

I wanted to find a cheap place to live at the time and quickly realized how strong the market was after purchasing, both on the rental and ownership side.

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

I found this on zillow and made an offer through a REA. It was not accepted at first and I moved on to another property which ultimately fell through and the sellers of the condo called my agent and said their deal had fallen through as well and our offer was their backup. They countered at a little higher than what I had originally offered and I accepted.

How did you finance this deal?

VA loan.

How did you add value to the deal?

After moving in I did some minor repairs and added dual pane vinyl windows. Prior to renting, just a coat a of paint a good cleaning.

What was the outcome?

Good cash flow and great appreciation, as well as tax shelter.

Lessons learned? Challenges?

When I moved out of the condo I rented a studio apartment for a couple months in order to get renters in and be able to qualify for another loan. Two months later I purchased and moved into a single family home. I definitely did not need to do all that extra work and could've gotten a little more creative with getting renters into the condo. It was a poor move on my part but I created a great relationship with the landlord of the studio who I probably never would've met if I hadn't moved there.

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

The agent I worked with was a newer agent. I wanted to help him out and give him a chance. It worked out great for my condo, but he made a lot of mistakes for my single family home and I believe caused one deal to fall through. I was pretty upset so I will not recommend nor name him on here. I believe he left RE altogether though.