San Diego condo - military mover
Investment Info:
Single-family residence buy & hold investment in San Diego.
Purchase price: $305,000
Cash invested: $20,000
Sale price: $430,000
Condo/townhome in Rancho Bernardo, San Diego. Nice location close to community center, schools, and shopping. Lived there for a year while stationed in San Diego; held as investment property for 8 years.
What made you interested in investing in this type of deal?
It was in San Diego after the market crash.
How did you find this deal and how did you negotiate it?
Short sale, pre-foreclosure, bankruptcy -- we were living a mile away renting a house. It was on the market and we were patient. Our initial contract was at $320k, but the owners filed for bankruptcy and forgot to tell us.... By this time, we had waited a few months already, so we countered with $305k due to the failure to disclose that pertinent information. We also moved in rent-free for three months while we waited to close.
How did you finance this deal?
FHA owner-occupant loan.
How did you add value to the deal?
New laminate wood flooring downstairs and carpet upstairs; refinished kitchen and bathroom cabinets and counters.
Lessons learned? Challenges?
Cash flow is king. While we bought after the crash at a good price, we didn't cash flow... it was a burden at first, but after several years of appreciation, we walked away with $140k.
