Updated almost 5 years ago on . Most recent reply
2B 2Ba Condo primary residence
Investment Info:
Condo other investment.
Purchase price: $385,000
Cash invested: $20,000
Bought a primary residence and updated the kitchen , flooring, HVAC and WH.
Rented out after living in it for 3 years. It is a 2 Bed 2 Bath condo in Rancho Bernado area. The Condo does not cash flow positive after OpEx and CapEx. so keeping this unit under self-management till the market rent covers all the expenses.
What made you interested in investing in this type of deal?
It is a nice , class A neighborhood with good schools
How did you find this deal and how did you negotiate it?
Found it via a Realtor. Did not negotiate. It was a sellers market ( in apr 2018) when i bought.
How did you finance this deal?
Conventional 10% down payment
How did you add value to the deal?
Remodeled kitchen, appliances, flooring, HVAC, WH and paint.
What was the outcome?
Property is in a desirable area , so lots of demand. It is currently rented slightly above market rent.
Lessons learned? Challenges?
Lessons
1. Keep my cash reserves high.
2. get a HELOC first and then move out of the primary residence to have access to the equity.
3. Be wary of HOA properties. Eats into cash flow so easily.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I did. I would recommend my agent at the time