First real estate property owned

[Patrick Yau]

Investment Info:

Condo buy & hold investment.

Purchase price: $335,000
Cash invested: $33,500

This is a simple 2 bed 2 bath condo with a 2 car garage. The layout was perfect for a starter home and I bought it so I can live close to work and build equity instead of paying a landlord.

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

This property was in a quiet and clean neighborhood within walking distance from my work.

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

I did not negotiate at all, since it was my first deal and I did not know what to do.

How did you finance this deal?

Traditional bank financing.

How did you add value to the deal?

I did minor remodels like changing out the carpet and adding new paint.

What was the outcome?

The condo was a cozy place to live.

Lessons learned? Challenges?

I learned many lessons from this deal, since it was my first one. I did not know how to look for information such as purchase price; the seller was asking for over 5x the price they paid. Had I known how much they made, I would have been more aggressive on my offer price. I did not know to ask neighbors questions about the HOA and their performance. I did not know to ask about their guest parking policies and CRR's.

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

No