My first purchase - triplex in small town Ritzville

[Sydney Kearns]

Investment Info:

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

Purchase price: $250,000
Cash invested: $20,000

Bought my first triplex and first property using an FHA loan. It was vacant when purchased so I was able to do light renovations on the 1st and 3rd unit. I am currently living in the 2nd unit working on renovations in my free time. Once I rent out this unit the property will cash flow $800/month after expenses. I put down $8,750 and am about $14,000 in renovation expenses. Looking forward to finishing this one up and moving onto my next unit in Las Vegas/Henderson NV.

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

This deal was on Zillow and the previous offer had fallen through. It was listed as conventional, but it looked to be in decent shape. I called and asked the realtor if the sellers were willing to go FHA and she said it had gone FHA in the past. I asked if she could represent both of us on the offer to sweeten the deal for her, and the sellers agreed to make a few repairs so it would go FHA.

How did you finance this deal?

I put down 8.75k of my own money, and the sellers contributed 10k in closing costs. This was a 3.5% FHA loan

How did you add value to the deal?

Luckily no one was living in the unit so i was able to put in new flooring/paint/fixtures to two of the units and increase the rent significantly (it was incredibly low to begin). I am living in the 3rd with plans to rent it out as a fully furnished unit.

What was the outcome?

It's been amazing so far! Projected to cash flow $800/month at least after all expenses.