There is still money to be made in real estate, apparently. This investor put down $100,000 for nine condos, made some renovations, then sold off some of them, for a pretty-quick 100% return.
Not bad. But, really, would you be willing to invest in a condo-development where a newly-renovated unit goes for under $25,000?
By Jane Hodges, Wall Street Journal
The Investor: David Pailet, 32, until recently managed a small Texas hedge fund. Following the stock market declines of 2001, he says, raising capital became difficult, and he decided to try real-estate investing.
The Property: The 550-square-foot, one-bedroom condo is one of nine units in Dallas that Mr. Pailet bought in April 2005 from a recently divorced investor whose changing finances put her at risk of foreclosure. The home is part of a 200-unit development with a pool. The 1969 complex is located in a low-income neighborhood that Mr. Pailet says is both safe and convenient to major highways.
Purchase price: $11,530. Mr. Pailet calculated the unit’s price based on square footage costs for his nine-property deal. He put $2,500 (more than 20%) down on the property.
Complete article: Buyer of a Budget Condo Makes a Small but Tangible Return