My very first deal (2018)
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $230,000
Cash invested: $9,500
I purchased a two family home (3br/1ba over 2br/1ba) in Essex Co. NJ in 2018. The goals were to finally go through with a deal and greatly cut down on my NYC cost of living. I went from paying $1300 a month just for a bedroom to $400 a month to live in the 2br unit.
What made you interested in investing in this type of deal?
I wanted to buy in a low-income community with a low crime rate that is within 30 mins of Manhattan. It was my first deal so I wanted something rent-ready, and since I'd be living there for the first year, I wanted it to be a place I'd be proud to call home.
How did you find this deal and how did you negotiate it?
I searched MLS constantly looking for something in my budget. I had an excelled agent, but I knew he had clients with much deeper pockets and wouldn't have the time to find homes for me. I found this one, went to view it the next day, and made an offer $10k above asking the day after. We gave them 24 hours to decide and they accepted!
How did you finance this deal?
FHA loan.
What was the outcome?
I got incredible tenants! Super clean, quiet, and they pay on time. I honestly don't know the home's current value but the house next door sold for $255k without any renovations a few months after I bought mine.
