Updated about 6 years ago on .
My first real estate purchase in DeKalb, IL
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Dekalb.
Purchase price: $131,000
Cash invested: $32,750
Converted single-family home to two units and a third unit in the rear of the property. 3 bed, 2 bed, and 1 bed.
What made you interested in investing in this type of deal?
Cashflow
How did you find this deal and how did you negotiate it?
Found a local investor via property tax search and called him after finding his website. I went and viewed 80% of his properties and picked the one that makde the most sense numbers wise.
How did you finance this deal?
Conventional loan through a mortgage broker. I opened up a HELOC on my primary residence as a safety net.
How did you add value to the deal?
None at this time.
What was the outcome?
A good cash-flowing property to own.
Lessons learned? Challenges?
Much of the major appliances are dated. I've had two furnaces quit within the first year. I forgot about a home warranty that was purchased along with the sale for replacing the first and made a $2000 mistake. On the second I remembered the home warranty and contacted them for the replacement.