1st Baby Steps in Building a Portfolio
Investment Info:
Small multi-family (2-4 units) private money loan investment.
Purchase price: $477,000
Cash invested: $140,000
one story duplex, 1300 sqft each unit, in high rental community with cheap living.
What made you interested in investing in this type of deal?
The idea part of the mortgage would be paid if one side wasn't rented.
How did you find this deal and how did you negotiate it?
Through a local real estate agent and made an offer based on the required 25% down for an investment property (not going to be primary residence)
How did you finance this deal?
Value of primary residence to qualify for the HELOC (down payment) and good credit score to secure remaining purchase price.
How did you add value to the deal?
Improvements after purchase - paint, new carpet/vinyl flooring, new blinds and all new stainless steel appliances.
What was the outcome?
Able to rent at a higher rate - $1800 from $1100
Lessons learned? Challenges?
Improving quality of living gains higher rent, in able to have better tenancy.