My first purchase 3 plex Rochester MN

[Justin Schwirtz]

Investment Info:

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

Purchase price: $155,000

3 plex bought 0% down The was the first property I bought in 2005 and managed myself in Rochester MN and still currently own.

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

Location / conveniently located near my house and easy to manage.

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

Property was across the street from where I lived. The property caught on fire and landlord wanted to sell. I spoke directly to owner and bought it from them after they completed the repairs with their insurance company.

How did you finance this deal?

0% income stated loan. - Back in the wild, wild west days of lenders and real estate.

How did you add value to the deal?

I could manage the property and maintain it first hand living across the street. Also adding value with improvements over time.

What was the outcome?

Great outcome.
I learned the process of management ( the up and downs )
Cash flow is great having held it for a longer timeframe.
I’ve learn the cycle of the property and what to expectant budget before it happens.

Lessons learned? Challenges?

I should have bought more properties when the terms were easy to get loans at 0%. Down and as long as you had good credit. The 1st few years are a learn experience and you cut your teeth. ( Don’t give up on the first bad renter or problem.) The biggest challenge in the early years was getting over the nerves to jump in and buy and 2nd problem was being too sympathetic to the potential renters stories and why their credit was bad on what ever excuses they had. -Make decisions based on a credit

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

I represented myself