All Forum Posts by: Colin E Stevenson

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Clintonville.

Purchase price: $54,900
Cash invested: $3,200

First investment...house hack. Up and down duplex. Both units were occupied and collecting $910/month in rent between them.

What made you interested in investing in this type of deal?

A house hack was the first goal for me. This property fit the bill.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS. It seemed like a good price for the amount of rental income it generates, so I made a full price offer contingent on the seller paying $2500 in closing costs.

How did you finance this deal?

This was a WHEDA loan available in the state of Wisconsin. It's essentially a no money down loan. The down payment is rolled into the mortgage.

Lessons learned? Challenges?

I had a hard time getting rid of the upstairs tenant after her lease had expired. She had still failed to vacate after a 28 day notice to leave. Not wanting to go through an eviction right off the bat, I worked out a deal with her to leave some of her bigger items in the basement for a couple months so she could move them in the spring when the weather was better.

It worked out and I was able to get in when I wanted.

Not sure about Colorado, but in Wisconsin there is a state backed first time buyer loan called WHEDA, which the down payment is rolled into the loan. I used it to buy my first duplex and I basically just had to come up with earnest money and closing costs. Perhaps Colorado has a similar program?

Sam, 

A lot of good advice here. I just closed on my first duplex two days ago.

I'll add a couple of points I didn't see.

1. Know your credit. I had been on credit karma for a couple of years and assumed that because my scores were in the 670-690 range, I was in ok shape to buy a house. This wasn't the case with actual FICO scores though, and I had several months of work to do on my credit before I was able to buy.

2. Check with several lenders for rates and mortgage options. Then get a pre-approval before you go shopping. My state, WI, has a great mortgage option for first timers, that outweighs FHA. Perhaps your state does too?

3. Know the rules of thumb. Use the rental calculator on BP. Become familiar enough with Ali's numbers on a napkin article, that you can do them yourself on a napkin and get yourself a good first deal.

Good luck

Thanks Jenkins, I'm loving this site and the podcasts a ton.

Returning the welcome, Erin! Hortonville/Greenville would seem to be an exciting market to be in. Congratulations, and hope the "retirement" can last for a lifetime!

Erin and Peter, thank you, and welcome to you as well. Good to know there are some members right in my backyard!

Thanks Dominic, I'll do that.

Thanks Frank! Looking forward to learning more. Love that quote! I find myself being more pulled in to real estate the more I learn about it.

Hello everyone, I'm from the Oshkosh WI area, and find myself interested in real estate, primarily buy and holds. I've taken in several podcasts and several reads on the subject so far including, BP beginners guide, ABC's of Real Estate Investing, Hold, and Rich Dad, Poor Dad.

Not sure if I will become a dedicated real estate investor, but I foresee my first home purchase being a duplex or triplex, and deciding from there whether I will continue on the real estate path, or use the money I save to invest more in the market.