First Rental Property Purchased 2019

[Ruben Castillo]

Investment Info:

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

Purchase price: $211,000
Cash invested: $20,000

Duplex rental with 2 Bedrooms, 1 bathroom, and basement on each side. Separate meters for each side and tenants pay all utility's.

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

My initial plan was to live on one side of the property while renting out the other (house hack). The property is located near popular restaurants and a university.

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

I found this through the MLS and had a real estate agent negotiate the deal.

How did you finance this deal?

I used an FHA loan.

How did you add value to the deal?

Both units had not had the rental increased in years. I ended up rehabbing one of the units and increasing the rent on the other unit.

What was the outcome?

Currently cash flowing and increasing in equity.

Lessons learned? Challenges?

Finding the right tenant is key to the success of a rental property. One of the challenges im dealing with now is property managing from out of state.

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

I worked with a real estate agent who was not a real estate investor which i would not do it again. They were great but i think it would of been great to get some knowledge from someone who is also a real estate investor.