First out of state purchase

[Katrina Thomas]

Investment Info:

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

Purchase price: $102,000
Cash invested: $25,000

Exceptionally large side-by-side duplex with an extra-large third floor/in-law suite. Each side of the duplex has a living room, dining room, kitchen, sunroom, and a covered front porch on the first floor; 3 bedrooms and a bathroom on the second floor and separate basements with spaces for storage and washer and dryer hookups laundry needs. The third floor/in-law suite has a living room, 3 bedrooms, kitchen and bathroom. I am currently renovating two units and have one active tenant.

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

I knew going into the REI market, I wanted a multi-family investment property. I wanted the flexibility of having multiple streams of income under one roof.

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

I discovered this deal through my agent Erin Dorsey Robinson. We ran the numbers and out of all the properties I had interest in, this one had the best COC return. I placed an offer and when the seller did not want to budge on terms, I resented the offer. After a few weeks the seller had a change of heart and we worked out a compromise.

How did you finance this deal?

A conventional loan through Social Mortgage and I personally had saved funds for the 20% down payment.

How did you add value to the deal?

Currently performing renovations on the exterior and interior of the property.

What was the outcome?

TBD

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

I worked with Erin Dorsey-Robinson (agent) who I luckily discovered on BiggerPockets. Erin was very helpful in ensuring all of my needs were met and held my hand through the entire process. She is one of the contributors to my succeeding in making my dream purchase a reality. Through her expertise, she recommended a lender by the name of Brian Lewis who at the time of this deal was a partner for Social Mortgage. I would highly recommend both individuals.

[Wale Lawal]

@Katrina Thomas

Congrats!

Buy in an area with some similarities to the area where you live, such as climate, demographics, or property age so that you have some idea of what you're dealing with. If you have lived in a 1960s suburb of California your entire life, don't buy a Victorian in Boston.

Don't buy a high-risk property. Buy in a primarily owner-occupied neighborhood to attract tenants who are a lower economic risk, says Ryan L. Hinricher, a founding partner of the investment home sales company Investor Nation. A high-quality property will typically have less maintenance and upkeep, he notes. "These properties also rent more quickly, as they usually have modern layouts and an adequate count of bedrooms and bathrooms."

Finally, it's crucial to build a great network of professionals to help you and to occasionally visit your property yourself.

All the best!