First property! Forgot to post about it!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Sanford.
Purchase price: $136,000
Cash invested: $4,500
Duplex. Used a VA loan so I didn't have to put anything down other than closing costs.
What made you interested in investing in this type of deal?
I liked the idea of having someone else taking care of what would be my rent and buying my property for me.
How did you find this deal and how did you negotiate it?
I worked with an agent who gave me access to the MLS essentially. I searched through for a month and analyzed every property that looked remotely interesting. Settled on 4 or 5, went and saw them and took action on one.
How did you finance this deal?
Being a Marine veteran, I was able to use the VA loan.
How did you add value to the deal?
To the deal, not much.
What was the outcome?
They wanted $160,000 I agreed only if they would replace all windows with new energy efficient windows. (foolishly) we went under contract. Appraisal came in at $136,000 even with new windows done, so I offered that instead. They said no and I walked away. I knew they were flippers and needed to sell sooner rather than later to get there money out, so I was hoping they’d reconsider. 3 days later I got a call saying they agreed to everything and the rest is history.
Lessons learned? Challenges?
Lots of learning on this one as it was my first. Learned to negotiate better. I almost payed way more than I needed to.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I did, but unfortunately they got out of the business. I need to find new ones as I plan to get more in the coming year.