Fourth real estate purchase

[Greg Bates]

Investment Info:

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

Purchase price: $466,000
Cash invested: $150,000

First “actual” investment property. Huge duplex in amazing location. Quite distressed, tons of potential

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

Want to have financial independence by the time I retire from military in 6 years

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

Found on realtor, viewed ASAP, offered $15k above list next day

How did you finance this deal?

Local Credit union has loan product specific to small multifamily investments. 20% down, 5/1 ARM at 3% amortized over 25 years, balloon payment after 10 years. Used HELOC on primary residence for down payment. Used savings for rehab

How did you add value to the deal?

Needed very intensive cosmetic rehab. Replaced everything.

What was the outcome?

To be determined but optimistic

Lessons learned? Challenges?

This was an attempt to “get on base” with real estate investing. First property purchased that wasn’t primary residence. Felt like getting hit by a pitch but we are on base none-the-less. Previous owner created plenty of hurdles with sub-standard care but amazing potential

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

Kell and Company