Investment Info:
Single-family residence buy & hold investment.
Purchase price: $955,000
Cash invested: $150,000
Sale price: $1,685,000
Had to drop price to sell in recession. (dates approximate)
What made you interested in investing in this type of deal?
Profit potential; I Love the Ocean.
How did you find this deal and how did you negotiate it?
On a leisurely drive with my realestate agent at the time. I made him pull over when I saw the For Sale sign. I walked out and peaked at the view and told him to put in an offer. He said "You can't, you haven't even seen the inside; we need an appointment". I knew the area and insisted. He made the call; turns out the listing agent was driving on his way to final negotiations and signatures. I offered 5K over asking and after interviewing my mortage broker and RE agent I got the property.
How did you finance this deal?
Line of credit for the 20% down payment.
Bank for the 80% balance.
= $0 of my own money.
How did you add value to the deal?
Complete dress up of the exterior; Enlarged the upstairs deck with the monster views.
Added a 'Margarita Bar' off the kitchen/family to take in the nightly sunsets.
Remodeled two bathrooms, some new wood flooring, new paint throughout.
What was the outcome?
See above.
