Investment Info:
Condo buy & hold investment.
Purchase price: $163,000
Cash invested: $37,500
2bd 2bath condo that could use a facelift.
What made you interested in investing in this type of deal?
It was safe. We live in the area and knew it was one of the more desired zip codes.
How did you find this deal and how did you negotiate it?
We were actually going to look at another property. About an hour before going to see it, our realtor texted us that it was under contract but she had another (this) property that was falling out of contract that we might be interested in. We went and toured it and put an offer in that day.
We didn't negotiate per say. We offered 3k over asking but asked for the seller to pay 3k towards closing costs
How did you finance this deal?
Conventional Mortgage
How did you add value to the deal?
We didn't.
What was the outcome?
We got a property manager and the place was rented and cash flowing ~$200/month 2 weeks after closing. Currently cash flowing ~$300/month after raising rents.
Lessons learned? Challenges?
When we walked the property with the property manager, she suggested ~6k worth of rehab that would raise the projected rent $300-$500. We decided to wait to do that since we had just spent majority of our bank account and thought "Oh we'll just do that when they move out".
Now we're conflicted and hoping for turnover in order to do the quick renovation and increase our cashflow. In the future, we'll make sure to do rehab upfront especially if it can be financed.
