My First Multi Family Rental

[Jason Ackerman]

Investment Info:

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

Purchase price: $606,000
Cash invested: $21,000

Closed my first property in Oct 2021. Feel like I hit a homerun on my first property cash flowing over 2K a month with more room to increase my cash flow. ☺

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

Cash flowing long term rental to start my portfolio.

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

Found it on Zillow and contacted my agent Jamie Rose and he set up a day and time to see it, and i made an offer the next day. Gave the seller asking price but asked for 15K in closing costs and they agreed.

How did you finance this deal?

3.5 FHA loan at a 2.5 interest rate.

How did you add value to the deal?

Work in progress.

What was the outcome?

Closed a few months later after jumping through a few hoops, but with the help of my agent and broker we made it work.

Lessons learned? Challenges?

Learned that there are more ways than one to get a deal done with the help of a good team. The property was listed as a duplex, and the purchase price was out of the range for an FHA loan (too expensive) so we relisted it as a triplex so I could get a larger loan for the property. Had to hire a contractor to make a few modifications so the appraiser would approve the deal, and list it as a triplex.

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

If you're in the Anchorage area I would highly recommend Jamie Rose! Very knowledgeable and is an investor himself so he knows what to look for.