1st investment deal
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $73,000
House was purchased as a single family. Went though town permitting process, Zoning board, to convert to a 2 family. Total rehab included new plumbing, heating, electrical. Downstairs units is a 2 bed/1 bath 1100sq. Upstairs unit is 1 bed/1bath, 800 Sq st. Convert upstairs into second unit. New kitchen, bathrooms in both units.
What made you interested in investing in this type of deal?
Suffered from analysis paralysis. Finally made the decision to go for it and this was the it.
How did you find this deal and how did you negotiate it?
On the MLS. We negotiated down $7k
How did you finance this deal?
100% financed through private money. (friends/family)
How did you add value to the deal?
Complete Rehab, converted from 1 to 2 family units.
What was the outcome?
Very positive cashflow and built a relationships for future deals
Lessons learned? Challenges?
Appraisal came back about $30k than anticipated (we think due to covid, may 2020), Needed cash to pay back investors (this was a BRRR). Lesson learned was to have some reserves just in case.
