Updated about 4 years ago on .
My 1st Investment Property
Investment Info:
Townhouse buy & hold investment.
Purchase price: $315,000
Cash invested: $70,000
This is a very nice townhome located in North Padre Island that's a 10 minute walk to the beach. The complex contains a large heated pool and children size pools. It's a 2 bedroom, 2 bath with a washer and dryer. There are plenty of restaurants near by to satisfy all appetites.
What made you interested in investing in this type of deal?
I became interested in this deal because of the cashflow appeal and the fact that my family and I could use the townhome for our own recreation.
How did you find this deal and how did you negotiate it?
A local real estate agent notified a friend of mine about the upcoming sale of the townhome. My friend informed me about it and we became partners in the deal. The owner stated the price he wanted and did not budge from it.
How did you finance this deal?
We financed the deal through a mortgage company. My partner and I invested 50% each of the down payment from our own funds.
How did you add value to the deal?
The furniture seen in the picture came with the sale of the townhome. We purchased outdoor seating furniture, cookware, plates, cups, and cooking utensils
What was the outcome?
We now own a vacation townhome that is cashflowing and appreciating in value.
Lessons learned? Challenges?
Since the townhome is relatively new we haven't had major challenges with it. We are learning what it cost to have a property management company manage the place. Neither I or my partner live in the area. We are both 4 hours away. We are also learning about the months that are slow in rentals. This first year left us a little short since we didn't start collecting rent until May. We're hoping that this full year will cover all expenses and leave us with some profit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes we did. Ms. Kellye Pena of Coldwell Banker. I'd recommend her whole heartedly.
