Updated about 1 year ago on .
My First Investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $305,000
Cash invested: $85,000
Picked up this off-market single-family home with my business partner—from my high school buddy’s grandma, actually.
We converted the basement into a 2 bed / 1 bath (881 sq ft) apartment with a private entrance, effectively turning it into a duplex. The upstairs is also a 2 bed / 1 bath, which we rented out immediately after closing to help offset our hard money loan costs.
Once renovations were complete, we refinanced into a DSCR loan, securing long-term financing and strong cash flow.
On top of that, the property sits on an alley-access lot, giving us a future development opportunity to add a DADU for even more income potential.
This one was all about creative structuring, value-add strategy, and making the most out of a solid off-market opportunity.
What made you interested in investing in this type of deal?
Tax Benefits and Cash Flow (This was my first Rental)
How did you find this deal and how did you negotiate it?
My good friend from high school. It was his grandmas home since childhood.
How did you finance this deal?
Hard Money then refinanced into a DSCR loan.
How did you add value to the deal?
$40k renovation turning the SFH into a Duplex. There is also room to build a DADU in the future with alley access!
What was the outcome?
$2,000 a month of cashflow
Lessons learned? Challenges?
Timelines are everything
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Certain Lending - Tim Fazio