2-Family Buy and Hold

[Coty B Lunn]

Investment Info:

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

Purchase price: $57,000
Cash invested: $20,000

2-Family residence fully rented. This properties rarely ever sees vacancies and is always filled fast when needed! This monthly cash flow takes into account mortgage, taxes and insurance payments.

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

This was the home that started it all! My first investment.

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

My parents first owned this home. This is the only investment property they have ever owned. When they decided they were going to get rid of it, I had to buy it!

How did you finance this deal?

I used a 3% down, no closing costs conventional loan for my first deal. Saving my FHA loan for my second investment property!

How did you add value to the deal?

I fixed up this home before renting it. This included a new roof and siding. Luckily my dad was able to assist me with the repairs!

What was the outcome?

I couldn't have asked for a better investment. Steady passive income was what I sought and that is exactly what I got!

Lessons learned? Challenges?

With it being my first investment property, I had to learn as much as I could from this one. I learned how to look for qualified renters and establish a process that I could use over and over again on other investments.

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

I didn't work with any Realtor when purchasing this home due to it being a family deal.