3rd Deal....This time a condo

9 Replies

Did my third deal end of last year and thought I'd share it now.

Type: 1BR 1BA Condo

Features: Corner ranch unit, 755 Sqft, W/D in unit, sliders to deck, 1 Car Garage, low rise two story building.

Built: 1975

Amenities: Pool and Club House

Best selling factors: Garage. W/D in unit. (Not many 1 bedrooms in complex have a garage & most comparable units in area do not have W/D in unit)

Purchase price: $51,000.00 (cash deal)

Note: Small assessment paid by seller at closing. No upcoming assessments.

Taxes: $3,602.00

HOA: $269.00/mo

Renovation cost: 10k (appliances included, hardwood floors, paint, remove drop ceiling & tile work in kitchen, doors, new vanity/mirror in bathroom)

Note: The bathroom was totally renovated not long before I purchased by previous owner. The newer washer/dryer seen in photo came with unit.

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What made me purchase? Saw a demand for these units in the market and knew I can get better rents than what they were going for. This complex is more well maintained than most in area and in a great location (safety wise, accessible). Also, the W/D feature, garage, layout, size and quality of living in this complex sold me. Sold my client one in complex first and rented their 1BR  for $1,295.00 to a grad student from local college. Most a one bedroom has ever rented in complex.

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Rented: $1,250.00 / 2 year lease to a local Accountant with excellent credit and references.

Before Renovations:

After Renovations:

Wow you have some really high taxes there at 3,600 a year for a 1 bed.

Here in GA taxes are about 1% or so of purchase price. 

Yep this town has some of the highest taxes in the county but it also has some of the best deals for cash flow.

If it wasn't for purchase price and consistent rental income, it would definitely not be on my radar.

Great work on the rehab, it came out excellent! On top of that, you were able to find a tenant to match

Thanks Kape. Didn't go overboard but kept it quality.

Congratulations Aaron for taking action and the purchase price

Aaron, looks great!  

I have been working with a lot of condos in Washington state.  On average, our highest returns are in the 8 to 10 cap range.  Looks like your market has pretty good fundamentals for cash flow.  

How much do you think you can resell that condo for after renovations?

Haven't been on here in a while.

Thanks Adrian!

Wouldn't be able to sell it for anything significant after renovations. Maybe 70k.

They were once sold in the $150-180k range.

Main reason for purchase was to find a cash investment with a high return for the long run. The rental market their is strong and I anticipate will stay strong for a very long time.

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