Updated almost 5 years ago on . Most recent reply
First Investment Property!
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $132,000
Cash invested: $27,000
Aug 2020, I purchased my first investment property, an early 1900's Triplex in Marion, IA. Purchase price was $132,000. Building consists of two 2bd 1ba units and one studio. I purchased using a 25yr commercial loan. Fully rented at time of purchase. Initial investment was $27,000. I'll need to put new siding/windows on in the next 2 years (current estimate to install is $13,000)
Total Rents= $1795/mo
PITI + Property Management + Utilities + M&R + Vacancy = $1350
Cashflow = $445/mo
What made you interested in investing in this type of deal?
I've been interested in REI for a few years, listening to podcasts, reading books, talking to mentors and finally decided multi-family, in a strong cashflow market was where I wanted to start.
How did you find this deal and how did you negotiate it?
I leveraged my network to find a local property manager, he had a client looking to sell it. We negotiated all new electrical to be put in for each unit ($6,000)
How did you finance this deal?
25 year commercial
How did you add value to the deal?
Adding the seperately metered, updated electrical.
Lessons learned? Challenges?
2 weeks into owning the property, the area was hit with the worst storm in a century. I'm still fighting insurance on some coverage, but this has not deterred me from continuing to seek investment opportunities.