BUYING MY FIRST INVESTMENT PROPERTY AT 24 YEARS OLD

[Yamil Pena]

Investment Info:

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

Purchase price: $636,000
Cash invested: $22,000

I BOUGHT THIS 4 UNIT IN CHICAGO WITH A 1% INTEREST RATE. I LIVE IN ONE UNIT AND RENT OUT THE OTHER 3 UNITS. I MAKE A PROFIT EVERY MONTH OF $500. ONCE I BUY ANOTHER PROPERTY AND MOVE OUT, I WOULD RENT OUT ALL THE UNITS AND PROFIT $1900 A MONTH ON THE PROPERTY.

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

MY SISTER INVESTED IN A PLACE AND INSPIRED ME. I WANTED TO MOVE OUT OF MY PARENTS HOME, BUT DIDNT WANT TO PAY RENT, AND INVESTING OPENED MY EYES TO THE POSSIBILTY OF GETTING EVERYTHING I WANTED.

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

VIA MLS.

How did you finance this deal?

I USED MY OWN MONEY FROM MY JOB. I WENT THROUGH A PROGRAM CALLED NACA (Neighborhood Assistance Corporation of America). I GOT TO BUY MY INTEREST RATE DOWN, NO PMI, THEY COVERED THE DOWNPAYMENT, APPROVED ME FOR MORE THAN A REGULAR LOAN WOULD APPROVE ME FOR, AND GAVE ME THE LOWEST INTEREST RATE ACCROSS THE U.S.

How did you add value to the deal?

I REMODELED TWO UNITS SO FAR, REPLACED THE ROOFING, AND CURRENTLY IN THE WORKS OF BUILDING OUT A BASMENT UNIT TO ADD VALUE TO THE PROPERTY, STILL DEBATING IF IT WILL BE WORTH IT OR IF I SHOULD JUST BUY ANOTHER DEAL.

What was the outcome?

STILL OWN THE PLACE, AND LIVE RENT FREE. STILL HAVE THE ABILITY TO SAVE MORE MONEY TO BUY MY NEXT DEAL.

Lessons learned? Challenges?

IVE LEARNED THE RESPONISBILITY OF BEING A LANDLORD. THE ADVANTAGE OF HIRING PEOPLE TO GET JOBS DONE INSTEAD OF DOING IT YOURSELF. SAVES SO MUCH TIME.

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

ME, I AM NOW A REAL ESTATE AGENT