Updated about 1 year ago on . Most recent reply
First investment property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $280,000
Cash invested: $75,000
Multifamily building containing 4 separate units each with 2 beds and 2 baths.
What made you interested in investing in this type of deal?
For a first deal it felt safer than a single family rental due to the fact that while possible, the chances of all units being vacant at the same time is much less than a single family being vacant. While right now only 2/4 units are occupied, there is still money coming in every month instead of having to foot the mortgage by myself completely.
How did you find this deal and how did you negotiate it?
It was an off market property that was sent to me after connecting with a property investor local to the area.
How did you finance this deal?
I took out a conventional 30 mortgage on the property.
How did you add value to the deal?
Currently in the process of having one of the vacant units renovated with higher end finishes than were previously used.
Lessons learned? Challenges?
It has been quite the learning experience. I'm more of a trusting individual than I should be, and in the future, I definitely won't be so trusting when I'm told something. Check and double check current numbers and repairs. Trust your gut when something just doesn't feel quite right and don't be afraid to walk away. Overall, this one hasn't scared me away from investing in real estate and I'm looking forward to what comes next!
