Updated over 4 years ago on . Most recent reply
My first deal. Buy and hold.
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $360,000
Cash invested: $80,000
Fully occupied 2 family, grossing $4,000 per month and located in PBD zone. A charming Victorian representing turn of the century Architecture throughout. Short walking distance to Glastonbury Center (30 seconds away). Just steps away from Eric Town Square. Newer roof and driveway/parking area. High quality ice melt system recently installed. Separate meters for units and an owner's meter. Upper unit is 2nd and 3rd floor
What made you interested in investing in this type of deal?
Opportunity for my first property.
How did you find this deal and how did you negotiate it?
A college friend owned this property. He was moving to the other side of the country and wanted to sell. I negotiated the deal before he could put on MLS.
How did you finance this deal?
25% down. 4.25% 15 year loan.
I know this is not the conventional way to operate on Bigger Pockets. I have a good paying job as a pharmacist. I recently had a baby girl and would like to have the property paid off in time to pay for her college tuition.
How did you add value to the deal?
Bought under market due to plumbing issues. Dad is a plumber. 1 + 1 = 2.
Not only that, the place is dirty. 100 year old home, plenty of cob webs. Sweat equity made this place shine.
What was the outcome?
Buy and hold. All is well even with the current COVID crisis.
Lessons learned? Challenges?
Putting the work in one's self gives great satisfaction. Also, I listened to the podcast with joe asamoah. He is right. Take care of your tenants and they will take care of your property. I treat my tenants like family and they really appreciate me, and I them.
Most Popular Reply
Great job you found something that hits the 1% Rent-to-Value Ratio!
It was very simuilar to my first property at 357k back in 2009 in Seattle. Although mine only rented for 2200.
The only thing I would do differently is go with the longest (30 year) mortgage as you can.