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.
- 2/2 820 SqFt sold for $154,500
- 2/2 1,340 SqFt sold for $190,000
- 2/2 1,330 SqFt sold for $185,000
- 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?