Rookie Investor in the Real Estate Industry

2 Replies

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $210,000

I purchased my first property back in 2015. It's a 2 flat. I live in 1 unit and rent out the 2nd unit.

What made you interested in investing in this type of deal?

I figured it would be a great way to lower my cost of living because my tenant would cover the majority of my mortgage payments. Lowering my cost of living enables me to to save for future investments.

How did you find this deal and how did you negotiate it?

At the time my sister was a real-estate agent. She had access to the MLS which is where I found my first property.

How did you finance this deal?

I finance this first deal using an FHA loan. I also received a 203k loan which financed up to 35k for home repairs.

Great job @Eric Williams .  It sounds like you were able to combine several strategies with the value add deal, low down payment 203k loan, and a house hack.  After four years of low personal expenses and likely some appreciation, are you scouting out your next deal?

I would be interested in hearing how the 203k rehab loan worked out for you.

Thanks Craig, At the moment I'm doing my research on wholesaling. Getting a property under contract with motivated seller is the next step for me come up with capital for future investments. I don't want to totally rely on the extra cash I have left over at the end of the month. I have a bad habit on spending my extra cash on nice restaurants and trips. kind of a budgeting issue... lol

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