My First Rental Investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $50,000
Cash invested: $50,000
My first investment was a three unit deal for $50,000 cash. The seller was in a must sell situation. Included was 2 bedroom, 1 bath house, 2 bedroom mobile home and a rental lot with a tenant owned mobile home. Total of three 1 acre lots each with well and septic.
When I purchased the property it was currently bringing in $1,000 per month total in rent. As you can see the pictures, the homes were in bad shape. So, $12,000 a year off $50,000 investment was already a 24% Cash on Cash home run.
Over the years a completely remolded the house and mobile home and made improvements to the lots and increased the rents to $2,350 per month. Today I still own these properties that creates great cash flow every month.
What made you interested in investing in this type of deal?
My friend who owns many rental properties referred me to this deal. I'll never forget what he told me, If you ever want to start purchasing real estate simply call this guy and write him a check and don't ask any questions. What he meant was, he already knew it was a great deal and advised me not to get caught up with over analysis and miss out out on the opportunity.
How did you find this deal and how did you negotiate it?
This deal was referred to me by a good friend, which means having a great network of like minded people is extremely important.
