- Votes |
My First Investment Property
Small multi-family (2-4 units) buy & hold investment in Pontiac.
Purchase price: $22,000
Cash invested: $30,000
My first investment property was a duplex.
How did you find this deal and how did you negotiate it?
This property was found on the MLS. I did't know anything about negotiating at that point, the property was listed for $30,000 and I offered $22,000. The seller was an older gentleman in his 80's that was looking to sell his portfolio of 20 properties and was listing 2 at a time. Come to find out he had a higher offer at $28,000 but he didn't like the guy so he turned it down. He happened to like us and took the $22,000 and never even counter offered. Lesson - Be kind to everyone!
How did you finance this deal?
Line of Credit
How did you add value to the deal?
Rehabbed the interior of the property, new kitchens, paint, light fixtures, and flooring.
What was the outcome?
When this property was purchased the first unit was renting for 595, which is now renting for 900. The second unit was renting for 605, and is now renting for 1200.
Lessons learned? Challenges?
This property is not a good neighborhood and during the rehab process the house next door burnt down. They did not have insurance so I had to fight with the city for 2 year to demo it. During that time I had no choice but to accept less than market value rent after rehabbing it. Once the house was on the demo list and taken down, I was finally able to charge market rent.
- Multifamily and Self Storage Investor
- Richmond, VA
- Votes |
> Come to find out he had a higher offer at $28,000 but he didn't like the guy so he turned it down. He happened to like us and took the $22,000 and never even counter offered. Lesson - Be kind to everyone!
What an excellent lesson!