First Deal - Buy and Hold

[Isaac Hayes]

Investment Info:

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

Purchase price: $455,000
Cash invested: $116,000

This property was purchased under market value. I plan on increasing rents to the market rate and refinancing to increase the cash on cash return and gain access to cash for an additional deal.

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

I'm interested in passive cash flow through real estate to enable me to stop trading my time for money. This deal aligns with that goal.

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

I found it on the MLS
List price: $485k
Initial offer: $435k
Seller counter offer: $462.5k
Accepted offer: $455k

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Purchasing under market value
Plan to increase rents to market rate

What was the outcome?

Purchasing my first deal

Lessons learned? Challenges?

Breaking a large goal down into much smaller pieces enables you to achieve a goal much more easily
Renting to college students results in a homeowners insurance surcharge

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Zeke Liston at Reafco