First Rental Property Purchased!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Baltimore.
Purchase price: $58,000
Cash invested: $11,600
Duplex for sale from another investor that was held for the past 10+ years
What made you interested in investing in this type of deal?
This was the type of deal that could be a win-win for both buyer and seller with no realtor fees involved. Seller was looking to get out of his residential holdings and I was looking to make my first deal.
How did you find this deal and how did you negotiate it?
Constant searching on the internet landed me on this listing. We got to know each other better and he agreed to work with me and become a mentor as I am just starting
How did you finance this deal?
Seller financing using OPM
How did you add value to the deal?
Allowed seller to also gain a steady stream of income without having to deal with hassles of rental property management.
What was the outcome?
Closed the deal and also set up a contract to buy another of his properties. Also being able to reach out to a veteran investor at any time is a huge plus!
Lessons learned? Challenges?
Sometimes the bank isn't the best bet to use as a financing option. Seller financing is a huge win when your seller owns the property outright and is willing to become the bank so you can start your own real estate empire. I will definitely be using seller financing as my first option when possible!