Firs time buyer - 3% down conventional
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $190,000
Cash invested: $7,200
Chicago - 1 bedroom condo
3% down conventional, 4% 30 year FRM. $2,000 back in seller credits at closing. $2,000 in cosmetic updated prior to move in. Potential monthly rent $2,100; (projected cashflow next summer with current year rents) - $350.
What made you interested in investing in this type of deal?
Despite the original intent to house hack a 2-3 flat, with the funds available to me, all the properties I found needed extensive repairs. The condo I found had an owner who moved out several months before and was paying a double mortgage. Repairs were easy; painted cabinets in the kitchen, updated lighting fixtures in the dining area and bathroom. Building rent rates supported the price too, even with only 3% down.
How did you find this deal and how did you negotiate it?
MLS. Seller was asking 192,500, I bid 185. Settled on 192 with 2,000 back in closing credits.
How did you finance this deal?
3% down, fixed rate mortgage(4% 30 year), conventional loan. Owner occupied through HomePossible.
How did you add value to the deal?
Existing kitchen aesthetics were very dark and stale since 1985, same with the lighting fixtures throughout the unit. The floors were recently done which was a plus. Got discounted premium paint from home depot sale, painted the cabinets white, updated the hardware on the cabinets too. Updated the dining area light fixture to a chandelier with 8 lights ( as opposed to the original 3 light), and updated the 90s era bathroom scones to more modern ones to match the dining area.
What was the outcome?
Still living in the unit, but intend to rent it out next summer and do the process all over. Hopefully with a multifamily next though if I have more money saved. Based on this summers rental rates in the building, comp 1 bedrooms are between 1850-2200. Currently, my unit would likely fall around 2050-2150/mo.