My first rental property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $157,000
I bought a side by side duplex in July of 19. Two bedroom one bath units. 1848 total square feet. Central location in Lincoln, NE. Great location near hospitals, downtown and the University of Nebraska. It is a nice neighborhood next to two schools and across the street from a popular Catholic church. Family neighborhood with nice homes and a strong renter base. I really have enjoyed the area.
What made you interested in investing in this type of deal?
As a renter looking at buying my first home I decided it would be my best financial decision to house hack. I felt this has really helped me learn and understand real estate and has helped put me in a better financial position.
How did you find this deal and how did you negotiate it?
I searched for months on the MLS and there was no inventory. I decided that I needed to look off market. I developed a specific criteria. I used a free trial of agentpro247.com to generate a list of all the properties that met my criteria. I then found the owners names on county website and searched the internet for phone numbers. I started cold calling. After some calls and making some offers, I finally found someone to accept my offer. I didn't use an agent and negotiated the deal myself.
How did you finance this deal?
20% down conventional financing.
How did you add value to the deal?
I made mostly cosmetic updates. The property was in dire need of cosmetic work. I am still mulling over different ways to add value.
What was the outcome?
I am living for free with some extra cash flow on top of it. I have learned a lot about the process of buying a property.
Lessons learned? Challenges?
Not having a realtor by my side was gratifying but challenging. There were a lot of times I felt unsure whether I was making the right decision or not. I did learn to approach every problem by taking the time to use different resources to find an answer.
