1st Deal about to be in the books!

18 Replies

Investment Info:

Small multi-family (2 units) buy & hold investment.

Purchase price: $171,000
Cash invested: $0

2/2.5/1 car garage 1024 sq ft per unit 
995/ea Gross Rent 

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

BiggerPockets education and tools.
Seeing other's success and house hacking to pay down debts.

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

Realtor found it off market.

How did you finance this deal?

0% down with VA loan but due to having this be my second VA loan my origination fees were higher. So the actual loan came out to be $176,500

How did you add value to the deal?

Didn’t have to do anything, the property just needs some lipstick.

What was the outcome?

I’m able to house hack for the next year until I get orders to my next duty station.

Lessons learned? Challenges?

Leverage, leverage, leverage! Due to being dumb in my early 20's I'm having to use my Proceeds that I'm making from selling current SFR to payoff some of my debt. So I couldn't use any of that money towards closing. Since I didn't have money for closing I had to negotiate closing cost being covered by the seller but they just add the closing costs into the listing price. Next time I want to have cash reserves to help with leverage towards my next deal. Also I didn't even ask if the buyer was willing to do seller financing. Regardless I'm happy to have my 1st investment property and the ability to house hack.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely! Kim “KP” Parker with Remax in Jacksonville, NC. She’s amazing and has an endless list of connections!

YAY! Congratulations on your new investment property! I wish I had gotten started at your age.

@Jill F. Trust me I wish I would’ve started in before my 20’s but you don’t know what you don’t know. I’m glad that I’m going to have the ability to pass this knowledge onto my son so he can continue running the family empire once I get there!

@Scott Henrikson definitely have done AirBnB in the past with renting out a room in my previous house. It’s just a start up cost I don’t have to provide all the amenities a whole place would need. I looked into it and yes it would be a killing, so something I’d be interested in the future.