Our 1st Project - Grammy's Condo in Westbrook ME

5 Replies

Investment Info:

Other buy & hold investment.

Purchase price: $137,000
Cash invested: $8,000

We were able to purchase this property through family and saw the potential in it very early on. Our plan was to live in it for two years and four years later - we're doing it! Now that we have gone through tenant screening and have (cross your fingers) a great tenant - we don't want to stop! Please feel free to reach out if you'd like to know more or if you have any ideas on next projects - I'd love to hear from you!

What made you interested in investing in this type of deal?

Honestly - it basically was dropped in our lap. We knew we wanted a new home and weren't as keen on a condo with a party wall over the potential of a single family. HOWEVER, when we realized that this could be a great long term investment vehicle we jumped right in. It was in a big part due to my partners parents who saw the potential long before we did and could have grabbed it for themselves - for this I am super grateful!

How did you find this deal and how did you negotiate it?

Due to my partner Brian's grandmother aging and needing more assistance then what she was able to access in her condo. There really wasn't any negotiations to speak of. The family knew what was needed to be able to continue caring for Grammy while being happy to let it go for probably just under market value.

How did you finance this deal?

We were able to use the Rural Development loan with no money down.

How did you add value to the deal?

We were ready willing and able to move in and maintain the property and were willing to work quickly to make it happen and alleviate the family of the burden of caring the maintenance and costs associated with holding it. Since then we have updated the bathrooms, updated the flooring and made some small cosmetic updates to add some value.

What was the outcome?

We have our first tenant set to move in this month!

Lessons learned? Challenges?

Challenge for us was feeling comfortable in a home that was basically turn key and met our current needs even though we knew we wanted this property to be income producing. Another challenge was that we had never taken on a project like this together so learning how to communicate, plan and stay on task and true to our deadlines was also a challenge.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I have a fantastic lender here in Maine that I would highly recommend.

Westbrook native here...great job! 

So what's next? Are you tackling another project and repeating the process somewhere?

Westbrook native?! Awesome:) - That's the same question we've been asking each other everyday - what is next?? We have gone back and forth between a couple of options. We have thought for a while that multi family would make the most sense for a long term buy and hold, however there are seemingly more single family opportunities here and the possibility of another single family that we could apply the BRRR strategy is very appealing as well.The home we just purchased has a space large enough to build out a studio or 1 bedroom and know that we want to tackle that sooner or later as well. In addition to these if we found a mentor/partner for a flip that could give us more $ for other investing opportunities we'd also be interested. Any recommendations??

Hi Charlotte! Congrats on getting the renters placed. So you all lived there for a few years and now have purchased a new primary residence and are renting out this condo? How long ago did you purchase the condo? I'm wondering if it has appreciated since then and you could tap into some of that to continue other with further RE investments. 

If it has gone up in value, don't forget to harvest your tax free capital gains! You must have lived in it 2 of the last 5 years.  Do the math and see if it makes sense to sell before time's up.

Hey Eddie & Amy A! Thank you so much - we certainly hope that it has appreciated a fair amount and are considering a line of credit, we just moved out in July and have lived in the home for the last 3+ years. Luckily we have a little time to decide to sell however we were thinking this would be a longer term hold - I'm interested in the potential sale price and will take a look at the numbers. 

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