My 3rd Investment Condo
Other buy & hold investment in Salem.
Purchase price: $170,000
Cash invested: $5,500
This was my 3rd investment condo that I purchased and the 2nd within this building in Salem. This unit came good to go out of the package. The only thing that I needed to do was update the vanity in the bathroom. It was a 550 sq foot studio that had recently been updated.
What made you interested in investing in this type of deal?
I have the ability to own up to 3 condos within this building. This unit was my 2nd purchase within this condo association/building. The unit had recently been updated so there was little to no work that I needed to do on my end. I spent $300 on a new vanity but other than that it was good to go. Rental price have been going up in Salem so knew at minimum I could get $1,500 per month in rent. Another solid investment.
How did you find this deal and how did you negotiate it?
I've been looking to purchase another unit in this building so I had been asking around. The owner reached out to me and my agent about my interest purchasing this unit.
How did you finance this deal?
I put 25% down and was able to get a 30 year loan with the first 10 years fixed at 4.875%.
How did you add value to the deal?
I spend a little extra dough to put in a new vanity in the bathroom but it really helped round out the unit and make it feel fresh and clean for the new tenant moving in.
What was the outcome?
I was able to find my tenant and start showing the unit before I closed on this deal. I closed on this deal on Aug 30th and the new tenant moved in Sept 1st. I've had no vacancy on this unit and the tenant just extended their lease for another year.
Lessons learned? Challenges?
I learned that it doesn't hurt to ask the current owner if they are okay with me showing the unit for rent prior to my actually closing and owning the unit. They didn't mind and as a result I was able to find a tenant that was able to move in the day after I closed on the unit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Sean Connelly from Remax in Marblehead, MA was my agent on this deal and I again worked with Fairway Mortgage to help with the financing.