Updated about 6 years ago on . Most recent reply
First Investment Property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $179,900
Cash invested: $8,000
My first 4 unit multi family home in Windsor VT, with great potential.
What made you interested in investing in this type of deal?
The potential growth and ROI with a great cash flow.
How did you find this deal and how did you negotiate it?
After a continued search for the right property, using Realtor.com, I found something that was a good asking price and had room for growth. The current Cap Rate was around 13.6% and the ability to grow to about 17.76% with some work and updates allowing to bring the rent rates up the the National County average in my State. After running the numbers using DealCheck.com I made an offer to which they accepted right away.
How did you finance this deal?
I used a conventional VA Home loan.
How did you add value to the deal?
I have a bachelors degree in business and finance with a focus in investment real estate, plus many years in the building trades.
What was the outcome?
Closing went without any major hiccups, now in the process of making updates to the kitchens and bathrooms to maximize my ROI.
Lessons learned? Challenges?
The biggest lesson that I learned was learning the lingo and what step there are to take, the components of the deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a great realtor Lisa Baldwin with Coldwell Banker out of Hanover, NH. Licensed in NH, VT and NJ.