First Investment Property

[Jacob Weaver]

Investment Info:

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

Purchase price: $517,000
Cash invested: $72,000

First investment property. This is a house hack. Multi-family properties are VERY rare in my area so took advantage when I saw this come on the market. The interior was in poor condition so I did extensive remodeling in order to immedietely put equity back into the property.

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

The lack of multi family dwellings in my area a long with the fact that I knew I could immediately put equity back into the property by doing some upgrades. Also, even being conservative, the numbers worked well.

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

I am an agent in the area, I came across the listing while it was in listing delay. In this market you are limited to how much you are able to negociate, however I got $8,000 towards closing costs after the inspector went through the house and listed everything that should be addressed.

How did you finance this deal?

15% down

How did you add value to the deal?

Repainted the entire interior, replaced the exterior trim around the home, caulked where necissary, additional sheet rock was needed in some places, and power washed the exterior of the home.

Lessons learned? Challenges?

It is imperative to have a team around you. Having contractors you know and trust will save you time, money, and anxiety. The biggest challenge was the timing between getting the work done to the house and getting tenants in the house ASAP.

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

I am apart of a team, this was my first home purchase and my team helped me out immensely. Guild mortgage was my lender and Stephen Page and his team absolutely killed it, he was great.