2 unit in Riverside, California my first Investment Property

[Jacob Ortiz]

Investment Info:

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

Purchase price: $490,000
Cash invested: $80,000

First Investment Property in Riverside CA . This is a 2 unit rental that cashflows $1,000 per month . This is a 1/2 acre lot with room to build and grow . This area in riverside has huge potential to grow .

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

I invested in this deal because I wasn't happy with my career and was looking for a property I could rent out and cashflow to support my life expenses.

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

Found this deal on the CRMLS . My realtor showed me the property the day it came on the market. Sellers were asking $460,000 . I bid $490,000 with a 30k above appraisal guarantee if the house didn't appraise at purchase price.

How did you finance this deal?

Financed with 15% down , Conventional Loan . 3.1% Interest Rate

How did you add value to the deal?

Built a fence between the both units so that each renter had their own yard space . Updated all windows in large home for better efficiency .Built a patio and artificial turf for smaller unit so that they feel like they aren't just renting a small unit but also a yard and space to call their own .

What was the outcome?

Have both units fully occupied . Mortgage is $2,333 . Rental Income from both units is $3,400. Tenants pay all bills and utilities . Cash Flow $1,000 an month .

Lessons learned? Challenges?

One big lesson I learned is you can get creative with financing . The market was so hot and the inventory was so low I still found a deal and made it work . Deals are out there you just need to be on top of finding them .

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

Worked with a Real Estate professional who brought me into the business .