Investment Info:
Condo buy & hold investment.
Purchase price: $295,000
Cash invested: $35,000
Bought the 2 bed 2 bath condo in 2019 with 3% down at 295k (+was given an $8k closing credit) and lived in it for 2 years exactly then spent 1 month gutting all the old carpet to lay LVP, repainting, and doing new shower and light fixtures, sinks, etc (about $25k). Rented it out to amazing tenants in 4 days for 2450 per month. Now valued over 400k. Cash flow is small but I’m in it for long term principal pay down/equity
What made you interested in investing in this type of deal?
The value add opportunity was huge. It had stained yellow walls and old musty carpet and old tile all throughout when we bought it
How did you find this deal and how did you negotiate it?
We found it on the MLS listed at 309,000 and used the inspection to negotiate down after we had it under contract
How did you finance this deal?
Conventional 3% down with a 3.75% rate
How did you add value to the deal?
Redid the crawl space liner, fixed an exterior closet mold issue, laid LVP through the entire unit, painted all the walls, doors and old fireplace, new faucets, shower, window sills, blinds, etc
What was the outcome?
It is now an extremely low maintenance rental in a great area with amazing super easy tenants that makes me a little money every month and more importantly for me, is building me equity
Lessons learned? Challenges?
Get recommended good handymen or contractors before giving random people a try. Always expect everything that can go wrong to go wrong and always expect your estimated budget to double if you want anything done in a timely manner
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Tucker Allen with American financial network in San Francisco was my lender and one of my great friends. He can make anything happen
