My first real estate investment has been a learning experience

2 Replies

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $290,000
Cash invested: $67,000

Purchased 3 duplexes + 1 SFH as a single transaction with a commercial loan.

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

Cashflow

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

This deal showed up on the MLS and I went directly to the listing agency. I wanted them to have dual-agency in case it made a negotiating difference in the price.

How did you finance this deal?

80% LTV commercial (residential) loan.

How did you add value to the deal?

There was deferred maintenance, as well as the expense of managing several properties. I decided to self-manage to save the fees and learn the industry at the same time.

What was the outcome?

I was forced to learn about Section8 (about 1/2 the units are section8). I immediately bought books and networked with experienced rental managers. Becoming a rental manager meant I was highly motivated to learn as quickly as possible. I'm happy I took the plunge.

Good work on self education about the market you invested in, and it sounds like you also learned quite a bit by being in the field. Good work and keep it up. 

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