My first Deal in Sacramento California
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $296,000
Cash invested: $20,000
Two homes on one lot! Front home sits on a corner lot at 1235 sqft, has 2 bedrooms + den, new tile around tub in bathroom, 1 yr old HVAC, new paint & remodeled kitchen. Back home at 836 sqft is fenced, has 1 bedroom + bonus room, 1 bath, has window laundry units and remodeled kitchen as well. Easy access to freeway & close to public transportation. Near to Christian Brothers High School. Remodeled/Updated: Yes!#!Remodeled/Updtd Desc: Bath 0-5YR, Kitchen 0-5YR
What made you interested in investing in this type of deal?
What made me interested in this deal was the "up and coming" trendy neighborhood of Oak Park, Sacarmento, and also the ability for me to start my investing career using this deal as my first "House Hack".
How did you find this deal and how did you negotiate it?
I found this deal on the MLS, September, 2018. I remember the market having slowed at this time, and I was able to get a near full price offer accepted, waiving all closing costs, and having the sellers do a few repairs.
How did you finance this deal?
FHA Loan, 3.5% down
How did you add value to the deal?
Since owning the property, I've added a laundry room to the 2nd back unit, created a driveway for parking, added a privacy fence with a small backyard, and painted both homes exteriors.
What was the outcome?
I'm living in the smaller unit, and renting out the larger corner home out for $1280, and have a $1800 mortgage.
Lessons learned? Challenges?
I should have done a FHA Renovation Loan on this deal, and built in my RENO costs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I did, my realtor was Josh Amolsch, with the Elizabeth Weintraub Team, in Sacramento, Ca.
