Updated almost 7 years ago on . Most recent reply
FIRST INVESTMENT PROPERTY
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $69,000
Cash invested: $16,000
We bought this 3 unit in foreclosure. We used private money to purchase and rehab took 9 months, got it up and running in spring of 2017 and so far it's been good.
It's a large 2 bedroom flat 2ndFL with two 1 bedrooms on the first floor. Off street parking and a back yard. We were all in at
112K it appraised at 161K, however we took it at 140K.
What made you interested in investing in this type of deal?
The location, price and the fact that we were able to add value
How did you find this deal and how did you negotiate it?
On the MLS, made offer to the bank, first asking price 105K 2nd asking price 89K, offered 65k they accepted 69K
How did you finance this deal?
First, private money, then a regular loan to an LLC
How did you add value to the deal?
Rehabbing the entire building, bathrooms, kitchens 2 of the units were pretty good, plumbing electric, painting, etc.
What was the outcome?
Unit is up and running doing well
Lessons learned? Challenges?
I wished I got it even cheaper (33.5%) discount. Work completed sooner. There are always hidden items to repair.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My Wife Marie (agent) Sunmark FCU
