Updated over 3 years ago on . Most recent reply
My first purchase - 2020 - looking for the next 2!
Investment Info:
Condo private money loan investment in Pensacola.
Purchase price: $244,000
Cash invested: $48,000
Sale price: $354,000
2 bedroom, 2.5 bath condo. Single building in a complex of 78 other properties, which surround a huge grotto style pool and Tiki Bar and Grill.
What made you interested in investing in this type of deal?
Beautiful location that I can use when rents are slow, whenever I want.
How did you find this deal and how did you negotiate it?
A real estate agent found this one for me. I just told him what I was interested in and where and he lived near the location and did the work for me.
How did you finance this deal?
I took out a conventional home loan, as a vacation home and borrowed $48,000 from my 401k as a down payment.
How did you add value to the deal?
Actually no, it was a great investment right away and if it hadn't been for Hurricane Sally, which hit right after my purchase, it would have produced much more. I am evaluating it's performance this year to see if I want to keep it or sell. HOA is high and takes away from it's profitability.
What was the outcome?
Not good in 2020, better in 2021, and this year will be the make or break year.
Lessons learned? Challenges?
Don't be afraid to invest a distance from your home. And Property Management is an important part of any deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Real Estate Agent and a good local broker. Yes I would recommend them both.
