Second investment failed

[Tryn Mesarch]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $415,000
Cash invested: $65,000
Sale price: $515,000

House hacked with this beautifully remodeled duplex

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

My wife and I wanted to continue investing in properties and grow our portfolio in a more stable manner for our area.

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

We worked with a realtor that sent out auto-mailers from our local MLS. I saw the listing price and photos and immediately knew that we had a winner. Our realtor had a reputation of closing deals and estimated the appraisal value very accurately for our offer.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Held property through a great inflationary period.

What was the outcome?

We became overleveraged with debt due to schooling and personal lifestyle, unfortunately. We sold the duplex for $515k and are working on being in a debt-free lifestyle before jumping back into real estate.

Lessons learned? Challenges?

Have your personal finances in order and don't utilize HELOCs. Hold an emergency fund for the property itself. Don't rent to or make special accommodations for family members, especially when you don't trust them in the first place.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Intercap Lending; Jason Snell with Century21 Everest