First Multifamily Property

[Alexander Bushey]

Investment Info:

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

I have purchased my first investment property for buy and hold, depending on the market. As of now, my plan for this first step in my portfolio is to renovate, which I have done 50% of so far. When the other half is done, I will be moving out and renting the other unit.

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

To add a financial asset that will enable me to save capital to invest in future assets.

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

I found this deal privately through a co worker, and negotiated. I negotiated as paying full price, but with cash back for renovation, that was not part of the funding deal, it was a separate agreement we did.

How did you finance this deal?

Institution financed, RD loan, owner occupy for 1 year.

How did you add value to the deal?

Renovation, purchased below market value.

What was the outcome?

so far, we have ran the numbers and see a positive cashflow once we rent out both units.

Lessons learned? Challenges?

I got lucky on this deal, because i didnt know how to work the numbers prior. Now I know im in a property that can cash flow, and have a great starter home for future investments.

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

i worked with an attorney for the closing docs, no realtor as it was private sale. Brian Stark, would recommend as he has his own portfolio and understands the game.