My first rental property .
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Newark.
Purchase price: $180,000
Cash invested: $131,000
This property is a side by side duplex with a big open attic with living space, 3 bedrooms and bathroom on second floor, main floor consist of living room, dining room, kitchen and half bathroom. Full unfinished basement with laundry rooms.
What made you interested in investing in this type of deal?
Well. I was looking at 3 family houses for about a year and kept striking out for one reason or another. Finally I decided to go after a dilapidated property that was bank owned so that I didn't have to deal with tenants not wanting to show their apartments.
How did you find this deal and how did you negotiate it?
I found this property on NJMLS and immediately asked my terrific agent Margaret Bober to put in the offer. They were asking 120k. She got back to me the next day and said the bank had 10 offers on the table. I eventually offered 180k after learning that there were 10 other offers on the table. I won the bid and went through the 203k program.
How did you finance this deal?
FHA 203k
How did you add value to the deal?
Cash.
What was the outcome?
The property is currently being renovated.
Lessons learned? Challenges?
Like Nike's slogan. Just do it. Never give up and don't be afraid to get aggressive.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. Margaret Bober from Terra realtors in NJ. Eva Malone from Homebridge financial.