First purchase where I'm the lead investor!

[Scott Wolf]

Investment Info:

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

Purchase price: $221,500
Cash invested: $60,000

Three single family homes on two lots, purchased from owner moving to SC for retirement. Originally listed at $250,000, made a low offer and ended up at $221,500. Financed by a local bank with 25% down in an LLC.

Plan is to raise the rents on the two occupied units to market levels (approx. $200 per month more per unit) and lease main house for $1,500 per month. Will update this post as the deal progresses.

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

I have been looking and trying for a while to purchase a cash-flowing asset to get myself to FI.

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

Deal was found on the MLS, and negotiated myself. It had sat on the market at $250,000 for a while and I made an offer of $185,000 (no mortgage contingency, just that if we find a bank that will lend on it, the seller's will allow us to get the financing.)

How did you finance this deal?

Local bank financed it at 25% down in an LLC.

How did you add value to the deal?

No value-add needed. Property was in perfect condition. Seller performed $1,500 worth of upgrades, mostly in replacing a boiler and replacing some gas valve caps.

What was the outcome?

Purchased and listed for rent already.

Lessons learned? Challenges?

TBD

[Seth Ferguson]

Congrats on the deal! Looking forward to seeing others where you're steering the ship.