First real estate investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
First 4-family income property, the purchase price was relatively low given the uphill market. The strategy was purely to generate passive income.
What made you interested in investing in this type of deal?
4 straight-forward units in the building. Utilities are all separate. The rents were good enough to generate net income immediately. Tenants are the locals thus very reluctant to move.
How did you find this deal and how did you negotiate it?
Made the offer in a private showing before the open house, and approached the seller's agent aggressively "a legit and fair offer with 24 hours validation only, take it or leave it. "
How did you finance this deal?
Private loan.
How did you add value to the deal?
Was the best deal for the first investment. There is room to upgrade the unit and improve the value of the property when ready.
What was the outcome?
Generating income as expected.
Lessons learned? Challenges?
There are 2 units where the tenants need the government's to help pay their rent. The rent is usually paid on time. However, when increasing the rent, the government will always make it harder for us to get the rent increase approved.