First Investment Property!

[Marc Kenyon]

Investment Info:

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

Purchase price: $189,000
Cash invested: $40,000

I set a goal for myself to purchase my first buy-and-hold in 2022 as a first step to building wealth. This well-maintained duplex just down the street in Central Wisconsin fit the bill.

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

Just wanted to get started. Learning the processes, establishing systems (core 4) and bringing my wife along on the journey.

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

Found the deal through a good friend, fellow middle school sports coach (my son's track coach) and one of my football player's dad. I negotiated it by meeting the owner, walking through the property, analyzing the deal, and making an offer that sounded fair and would cash-flow positively out the gate. Owner accepted the offer without conditions and off we went.

How did you finance this deal?

Business loan (5-year ARM) as suggested by my loan officer.

How did you add value to the deal?

Property was rented below market. I'm working to bring one unit up to market rent (currently vacant) and will rent the other unit as a medium-term rental to traveling professionals. This will substantially elevate the NOI.

Lessons learned? Challenges?

I used this process to vet a bunch of individuals as my core 4. Some people I thought would help did not come through, but I did eventually find some great people who understand my vision, share in my goals, and genuinely want to help. These great people will continue to not only be on my team, but also great friends.

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

Noah Eschenbauch (Broker/Realtor with Home Point Real Estate in Stevens Point, WI)
Ben Hertel (Loan Officer with Prevail Bank in Marshfield, WI)