The first step, and the first lesson
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Hartford.
Purchase price: $253,000
Cash invested: $8,500
I bought my first duplex because I thought it would be smarter to pay money towards something I can own vs rent. I wanted to make my home family oriented and give my parents something they never had (a home) so I moved them in as our tenants. Although I still pay money towards the mortgage, its less than I would pay for rent. To be honest though, now that I've been doing so much research I could have gotten a better deal. My goal is to get 10 rental units within the next 3-5 years
What made you interested in investing in this type of deal?
Save money, and establish something for my family
How did you find this deal and how did you negotiate it?
Didnt do much negotiating. I was a newbie and paid the asking price which was the exact amount it appraised for
How did you finance this deal?
FHA loan of 3.5% down payment
How did you add value to the deal?
Not sure how much value I added. Still learning how to calculate that but we added washer and dryer hookups in the basement, added tile on half the basement where the laundry is, added carpet all throughout the back stairwell (including into the basement), added auto door openers to the garage, got a brand new (secure) door for the back entrance into the stairwell, and finally removed all the old overgrown landscaping in the front and replaced it with new bushes and shrubs.
What was the outcome?
Still trying to figure that out...
Lessons learned? Challenges?
Buy a better deal where the number work better for cash flow, which is my ultimate goal
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No, they were pretty basic