Updated almost 2 years ago on . Most recent reply
Cash Flowing Condo from Day 1
Investment Info:
Condo buy & hold investment.
Purchase price: $145,000
Cash invested: $8,000
This 2 bedroom Condo with a garage was fully renovated by the owners before moving into a house and holding it for a rental since 2001. They accepted terms for creative financing for 1 year allowing me time to improve rents and refinance with very little down payment.
We started cash flowing day 1 with a 1.29% DSCR. The kitchen has upgraded quartz counters, SS appliances, and they updated the bathroom as well. They also replaced the AC/Heater in 2021, so very little needed on this little diamond in the rough.
We're excited to move it forward into the future.
What made you interested in investing in this type of deal?
The cash flow was good from day 1. The sellers were amicable to creative subject to financing with a low down payment to get in. The unit is fully renovated with very little to no CAPEX needed.
How did you find this deal and how did you negotiate it?
The seller is a client of mine that was looking to sell it.
We negotiated seller financing (SUBTO) terms that worked for all of us.
How did you finance this deal?
Creative SUBTO - owner finance.
How did you add value to the deal?
I am a real estate broker and have access to market data for valuations.
What was the outcome?
We are cash flowing from day 1. 1.29% DSCR.
Lessons learned? Challenges?
So far no challenges.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a licensed broker and handled the transaction myself. My attorney's drafted the mortgage and note and we sent it to our favorite title broker at Fidelity National Title for closing. Thanks Kathy Becker.
