Investment Info:
Condo buy & hold investment in Avon.
Purchase price: $419,000
Cash invested: $85,000
This has been my first property investment and sparked my true interest in growth in real estate. The property is nestled up on a hill in the Vail Valley overlooking Beaver Creek Resort. Set away from the bustle of I-70, this quiet condo was built in 1990 with new upgrades (granite counters, updated fixtures, kitchen appliances, etc.) in the last 5 years by the previous owner. A 2bd/2bth with an extended porch, garage, and detached garage made it the ideal first-time home for a young couple.
What made you interested in investing in this type of deal?
I had moved into a new rental every year for 5 years and was tired of moving. I spoke with a real estate agent and started hunting the market in the middle of the pandemic height of 2020. I plan to focus my portfolio on SMF and this fits the bill perfectly as my first mountain property.
How did you find this deal and how did you negotiate it?
The condo was listed for over 100 days at the time of the offer. The stock market crashed and COVID was still running rampant. The seller was highly motivated. Following inspection, there were sealing issues on the patio door and the furnace/laundry unit were both on their last limbs. I was able to negotiate down from $429,900 to $419,000.
How did you finance this deal?
18% - Savings
Remaining conventional 30-yr mortgage from Loan Depot (now managed via JP Morgan Chase)
How did you add value to the deal?
Fresh paint - all closets
Minor bathroom updates - paint, lighting fixtures, grout tiles
Patio - stain, and seal
Dining - new chandelier
Lessons learned? Challenges?
Take a breath and don't be too eager. As my first property, I was so nervous to negotiate further or push further. Now having gone through the process, I'm less anxious and more willing to walk away or push for the right property.
