Updated 3 months ago on . Most recent reply
First Ever Property In Groton CT
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $395,000
Cash invested: $20,000
Duplex, I am currently house hacking this property with a roommate also living on my side. The other unit gets $1,800 in rent and my buddy pays $500. The Mortgage taxes and insurances come out to $2,998 a month. The property came with a very large back lot that opens up to another street. I am currently in the processes of splitting the lot into two so I can see about building an additional duplex on the back lot. This would be my first new construction project looking for advice.
What made you interested in investing in this type of deal?
I have always knew that I wanted to house hack and when I found out I was going to be moving to Groton for work I knew that this would be the perfect opportunity to house hack.
How did you find this deal and how did you negotiate it?
This was my first deal and so I went classic MLS with a real-estate agent. I would actually living out of state and was putting in offers without seeing properties. This was a little nerv racking but I had a good agent that I trusted! The first time I saw the property in person was at closing during my walk trough. After the inspections there were a couple of to-do that the selling didn't want to deal with so we agreed on a $2,000 credit at closing.
How did you finance this deal?
5% down using a CT first time home buyer loan.
How did you add value to the deal?
I updated many of the appliances in my unit upon moving in there are hold over renters in the other unit so no improvement yet. coming soon. All in all this was a pretty turn key property. I didn't want a lot to fix up with it being my first property I was trying to play it what felt safer not sure if it was truly.
What was the outcome?
Outcome TBD so far so good paying only $700 of my mortgage is pretty good right now.
Lessons learned? Challenges?
Lessons learned, I probably could have put in a lower offer. I offered asking price with inspection for buyers knowledge only which I ended up asking for some compensation after the inspection anyway. Also would recommend getting an accountant for at least the first years taxes I have been doing them on my own and I know there is more I could be doing.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I had a great agent Karen Foshay of Drawbridge Realty.