Investment Info:
Condo buy & hold investment in Palm Beach Gardens.
Purchase price: $227,000
Buy and Hold Property. 100K down, remaining principle paid off in full over 5 years. Furnished long-term rental cash flows $3,250 per month.
To be honest I purchased it with the intention of potentially living there after my stint in NYC, but it ended up being a cash flowing property.
What made you interested in investing in this type of deal?
It was two-fold.
1) I wanted to purchase a property but was working real estate in Manhattan at the time and a decent condo there was 1M+ and unaffordable.
2) I was seeing my hometown of Palm Beach Gardens, FL explode. So it ended up being not only and investment but I knew I wouldn't live in Manhattan the rest of my life so it was also my insurance policy for if I needed to move home and rebuild my realty business essentially from scratch.
How did you find this deal and how did you negotiate it?
It was off-market through a connection who lived in the condo complex and introduced me to the owner.
How did you finance this deal?
I wanted low monthlies and was in a good position to put $100K down.
How did you add value to the deal?
Took it prior to MLS listing and saved them some work.
What was the outcome?
Optimal outcome. I was invested in crypto, and back then, the market was good (not so now lol). But when I'd make a bit of crypto loot, I'd make principal only payments and eventually got the $127K balance paid off in 4/5 years. The condo would appraise around $430K-ish at the moment. So it's cash flowing $3,250 per month + gained somewhere around $200K in equity.
Lessons learned? Challenges?
I found someone in the building who was moving in with their new husband and I bought every piece of their basically-new furniture from them for $4,000. I saved them the hassle of moving their furniture, and on the market they likely could've sold everything for $10,000. So I was able to save $6,000 by knowing some folks in the building. I was able to furnish the condo and rent it for $400-$500 more per month than I likely would've been unfurnished.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Although I was in real estate in NY at the time, I wasn't on the ground in FL. I didn't want to deal with renting this remotely so I worked with one of my best friends down there at Sutter & Nugent and we got it rented in 3 weeks.
