Condo Investment in Minneapolis
Investment Info:
Condo buy & hold investment.
Purchase price: $175,000
Cash invested: $5,000
I invested in my first condo to live in Minneapolis in January 2022 (fresh out of college). I lived there for a year and a half and now rent it out with a positive cash flow.
What made you interested in investing in this type of deal?
I was moving there from out of state and was deciding between renting and buying. I only had a couple of weeks to figure it all out but with some help and creative financing, I was able to buy.
How did you find this deal and how did you negotiate it?
I found this deal through a real estate agent, Bethany Nelson, in Minneapolis. As an investor herself, she helped me with everything.
How did you finance this deal?
I used a program in Minnesota to finance a small downpayment with a no-interest loan, then had a loan from my parents to fill in about $5000 of costs.
How did you add value to the deal?
While I lived there, I painted all the walls and replaced the water heater. This year, between tenants, I will be replacing the carpet with vinyl flooring, updating the bathroom vanity/lighting/mirror, and some other small updates such as changing out light fixtures, and faucets, and switching the old blinds from fresh curtains. In the future, I'd like to update the cabinets and baseboard heaters.
What was the outcome?
Because I got such a great location, condominium, amenities, and a unique floor plan, I am able to rent it out and cash flow from it.
Lessons learned? Challenges?
This has been my first year having a rental and I have been managing it from another state since I moved back to Oregon, which has been difficult and a bit more costly since I am not local.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Bethany Nelson in Minneapolis, she is amazing!