First home purchase and start of REI career

[Christian Sharron]

Investment Info:

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

Purchase price: $130,000
Cash invested: $29,990

Humble triplex located outside of downtown Greensboro

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

Finding an off-market deal and the possibility of living for free!

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

A good friend's father notified me one day that he had a 2/1 unit available for rent close to the apartment I was currently living at and it was less than what I was paying. My lease wasn't up for another 4 months but he was happy to hold it for me because he knew I'd be a stress free tenant. I rented for 6 months and worked 2 jobs then to save up a 23% down payment. He agreed to seller financing at 2.4% interest with a 20yr note and this allowed me to put the property under an LLC.

How did you finance this deal?

Seller financing

How did you add value to the deal?

I bought the property as-is and completed the deferred maintenance/repairs over the following months (new window a/c units, new gravel driveway, bathroom remodel, etc.)

What was the outcome?

I was almost able to live for free but because water and electricity are included for renters, I was paying just shy of $400/mo during the hottest summer months when all way said and done.

Lessons learned? Challenges?

A quality home inspection is worth it but the bigger lesson to me was the value of networking.

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

I'm very thankful for Nigel Nelson, a fellow investor, agent, and owner of Easy Homes LLC, for helping navigate my first home purchase and save on some closing costs.