Updated over 2 years ago on . Most recent reply
First Multi-Family Investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $220,000
Cash invested: $55,000
This is my first investment property/primary residence. I bought this property off market from a local investor. It is a tri-plex that I live in and rent out the other units. A lot of the major components are brand new including roof, siding, furnaces, A/C, flooring. The gas is separate and the electric is combined, but I do split the electric bill between tenants. So far I am loving being a landlord!
What made you interested in investing in this type of deal?
I wanted a primary residence as well as an investment property, so why not have both?!
How did you find this deal and how did you negotiate it?
I found this deal through a local investor I met at my W2 job and I was able to save money because he was able to sell for less because we did not use a realtor.
How did you finance this deal?
I saved for over 2 years and had just enough money to put 25% down. I also borrowed the closing costs from my parents which I quickly repaid.
How did you add value to the deal?
I bought under appraisal! I paid 220K and the property appraised at 230K.
What was the outcome?
I am one step closer to achieving my dreams and having a great time on the journey there.
Lessons learned? Challenges?
Listen to the numbers and ignore the nay-sayers.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My lender Mike Martin from Arcadia Lending made the process quick and easy. For insurance Hunter Gall from Whims Insurance Agency gave me the best rates.
