First Investment! (Small Multi-Family)

First Investment! (Small Multi-Family)

Real Estate Agent · Nashville, TN · Member since 2015 · 21 posts · 56 votes

Hi Everyone,

I just posted my first new member post, and figured I'd post my first investment here.

This property needed a lot of work. It's in a great location in Nashville that became highly sought after. It's a triplex that my wife and I bought about 9 years ago and have lived in one of the units since. We inherited tenants that have lived there for 20+ years. Within 2 months one of the tenants passed away and the other vacated. We knew the place would need to be a complete gut once we had vacancy. It took about 2.5 years to renovate the three units one by one. We ran into major problems with our subcontractors which cost us a ton of time and money. The place is finally all finished, filled with tenants and fits the neighborhood.

Heres some numbers...

Purchase Price = $221,000

Renovations = $85,000 + A lot of sweat equity and help from Father and Law.

Gross Income = $3,595

Cash Flow = $1,790

*My wife and I still live there. We decided to furnish one unit for month to month rental, which is going well for us so far. The other unit we rent is long term.

As I'm very new, if anyone has any questions I'd love the challenge in answering them for practice. It was a whirlwind getting this place done with a full time job and 2 babies under years old at home. But now that we're on the other side we're ready to go full steam ahead to the next one!

40Reply
231 views

Most Popular Reply

MD · Member since 2017 · 8 posts · 8 votes
8y

HI Randall,

Can you go into more detail about the numbers? Did you use a bank loan to finance the renovations? How did you go about finding suitable tenants? Any advice on finding contractors? 

See this reply in the discussion

76 Replies

Jump to latestLatest
  • Seattle, WA · Member since 2018 · 9 posts · 24 votes
    8y

    That sounds like a great scenario! Keep up the great work. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.