Condo other investment in King Of Prussia.
Purchase price: $180,000
Cash invested: $60,000
I bought this property for $180k with 5% down as a primary residence and was worth about $220k at the time of purchase. I've put in about $60k including the closing costs, down payment, and renovations to bring the value up to about $250k and currently renting out the place per room to maximize on the cash flow.
What made you interested in investing in this type of deal?
I was looking to move closer to work at the time and I couldn't find a cheaper accommodation in King of Prussia, PA so I started looking for houses/condos that needed some work and ended up settling on this property.
How did you find this deal and how did you negotiate it?
I found this deal on Zillow. The property was listed for $200k and was able to bring the price down to $180k. I worked with another Realtor to negotiate the price as I didn't have Real Estate Agent license at the time.
How did you finance this deal?
My own money and private lending
How did you add value to the deal?
Added new floors, new bathroom, new light fixtures and ceilings, created a bedroom from an office.
What was the outcome?
Currently renting the condo per room to increase cash flow, and increased the value by $30k after renovations. I refinanced the property at a lower interest rate and took out about $5k from the refinance.
Lessons learned? Challenges?
Unfortunately, I had no experience in a Real Estate at the time and made lot of mistakes along the way from the purchase price to renovations to being a landlord. I do believe I could've negotiated the price for this condo for less than $165k if I had more experience. The renovations could've been a bit cheaper.
Congrats on your first deal. That's the most important one and it sounds like you learned some lessons along the way, which is the most important part. How has your experience been living at a house that you are renting out by the room?
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