My First True Investment Property

[Sterling Porter]

Investment Info:

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

Purchase price: $140,000
Cash invested: $35,000

This property is a duplex located in Henderson, NC. The property offered good value for a multi-family unit and was structurally solid with some repairs needed for which we were able to negotiate fair compensation.

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

My goal was to invest in multi-family properties that would generate some cash flow but also offer potential for equity growth in the near future. Based on the appraised value, we were able to have equity immediately after the deal.

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

I used a local real estate agent who provided numerous options for me within a reasonable distance from my primary home.

How did you finance this deal?

I used a DSCR loan with a 25% down payment.

How did you add value to the deal?

We were able to negotiate some repairs to be made prior to purchase which helped add value to the property without increasing the purchase price.

What was the outcome?

Per the appraisal, the home appraised above the purchase price by $15k.

Lessons learned? Challenges?

The art of negotiation is key. Even when dealing with a motivated seller, it's important to stick to your guns but to also be fair. What I loved about this deal was that at no point was I or the seller being unreasonable.