First investment property purchase

[Chris Thomas]

Investment Info:

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

Purchase price: $220,000
Cash invested: $10,000

Deal was brought to me by a family friend who is also a partner on this deal as they brought it to me but couldn’t finance it. He is a very good contractor and helped remodel the entire place with no labor costs as he has equity in the deal.

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

I have been interested in investing in multi family since 2018 when I started college and wanted to figure out how to make money outside of a 9-5 job. This property was the perfect start in my eyes

How did you finance this deal?

This deal was financed with an FHA 203k loan which was a nightmare to go through with but after 8 months of set back after set back we finally closed April 2023

How did you add value to the deal?

We completely remodeled a unit that had plumbing issues which caused the concrete floor to sink.

Lessons learned? Challenges?

FHA 203k loans are horribly complex to go through with and mountains of paperwork that never ends. The only way this was possible is that my partner on the deal is a licensed contractor and was able to do all the paperwork. Any regular contractor would 100% not have kept up with all the paperwork needed and stipulations necessary to get this loan.