My Condo Purchase and the Numbers

In my last article, I talked about My Condo Renovation, and how much I learned from the Reno. I also showed you guys some before and after pictures. I hope you guys like the look. I love how it all came out.

Yesterday was my one-year anniversary of buying the condo. It took about 7 months to finish the reno, so I been living here for 5 months. I know you guys been waiting for the numbers so here they are.

2 Bedroom / 2 Bathroom 1,100 Sqft

Purchased Price: $86,000

Renovation Cost: ~$30,000

Mortgage Rate: 3.63%

I value my condo now at $170,000

Here are recently sold units in my complex.

  1. 2/2 820 SqFt sold for $154,500
  2. 2/2 1,340 SqFt sold for $190,000
  3. 2/2 1,330 SqFt sold for $185,000
  4. 2/2 1,200 SqFt sold for $142,500

My condo was originally going for $110,000, but the owner dropped it by $10k to $99,999. I then sent an offer of $84,000 and the owner counteroffer with a price of $86,000. I accepted that offer and the rest is history.

The way I kept track of my renovation cost was with Personal Capital. It keeps detail transaction of each purchase as well as show me charts and category. I highly recommend signing up. It is way better than Mint and its free. Personal Capital Sign Up Here

Also, I am currently renting the other bedroom and bathroom. This is where my rental income comes from. I am renting the other room and bathroom for $700 a month.

Let’s do some more numbers here. I put 15% down and paid for closing cost. The total was $15,636 + reno cost of ~$30,000 + 7 months time line to get it in livable condition of $7,620 (this is HOA and Mortgage)

So my initial investment cost is about $53,256. Since I get a monthly rental income of $700, so my yearly total will be $8,400. I am yielding 15.77%

How do you guys like them apples?

I do not plan to buy any more homes. Hopefully, my next home will be an RV or a rental unit somewhere around the world.

Thanks for reading and please leave a comment.

Do you have a rental income? Love it or dislike it?

Comments

    • The person that is renting it is a freidn that i know for a few years. So far he is great. Pay on time and is very quiet. Best of luck on finding someone.

    • The person that is renting it is a friend that i know for a few years. So far he is great. Pay on time and is very quiet. Best of luck on finding someone.

    • Thanks!! it was a lot of work and I learned a lot. it was definitely a great experience and I am glad everything worked out with the income.

  1. Felix ,

    Your condo’s value doubled within only one year.

    Great job you did !

    May I know which city your condo located ?

    You are a smart man in investing !

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