Small multi-family (2-4 units) buy & hold investment.
Purchase price: $267,500
First Purchase, Duplex that I am owner-occupying, bought with FHA loan, tenant pays 1325.00 a month, my unit was previously rented for 1025, but I believe the market is closer to 1100.
What made you interested in investing in this type of deal?
I was targeting duplexes in order to owner-occupy. Since I will be personally living here, I sacrificed getting a better deal in favor of getting into an updated place in a better neighborhood.
How did you find this deal and how did you negotiate it?
Worked with a realtor and this unit was listed on MLS. Offered below list, but there were multiple offers so I had to raise my offer. Worked to get non-monetary value by negotiating sit-downs with the seller, who is an established investor in the area.
How did you finance this deal?
FHA loan, 10% down
How did you add value to the deal?
Will be personally managing the property, and will be getting familair with the area as I think I am interested in repeating the process in 12 months once I have met the requirements of the FHA.
What was the outcome?
Got my first deal done, and just received my first rent check.
Lessons learned? Challenges?
In the future, I will over-estimate closing costs as I nearly did not have enough for the down payment.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My realtor Shahada Fennoy was a great resource.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you