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Anthony Galindo
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Long Term Hold in Downtown Anaheim

Anthony Galindo
Posted Feb 11 2021, 12:18

Investment Info:

Townhouse buy & hold investment in Anaheim.

Purchase price: $122,000
Cash invested: $22,000

This was my first house that I bought when I was 27 years old. After we gained equity we used that to purchase a new larger home in 2005 and rented out this home. We have been renting this home now ever since.

What made you interested in investing in this type of deal?

It seemed like a no brainer to build wealth and by using real estate to do this.
No one told me, but I could see the value.

How did you find this deal and how did you negotiate it?

We bought this house with no money down. The down payment was provided by the city under a first-time home buyer program. After owning the home for 20 years the down payment would be forgiven. I learned of this deal from my mother that worked for the city at the time.

How did you finance this deal?

No money down and a traditional 30-year loan from the lender.
Since this time I have re-financed many times.

How did you add value to the deal?

I have added granite counter-tops and have added landscaping to the backyard. Not much more than that.

What was the outcome?

I have been able to pay for my daughter's college with extra income from this home. The home is now worth $550,000. The area is now walking distance from breweries and local hot spots like the Packing House. There is still a loan with 1$50,000 left on it. Overall a long term win although I wish I could have invested in more properties.

Lessons learned? Challenges?

Be very careful who you rent to. I try to rent to families as they tend to stay longer. I have had people with great credit do bad things and I have had tenants that had a bankruptcy be the best tenants ever. So it's kind of a feel. But also, use your background checks!
I had one tenant that her sole income was from federal disability. After a few months she stopped paying rent. I took her to small claims and won. But I could not make her pay as her disability checks are protected.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Check into first time home buyer deals from your city!