First Investment Property

[Kevin Cordova]

Investment Info:

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

Purchase price: $635,000
Cash invested: $127,000

This is a 4 unit house with 2 bedrooms 1 bath in each. We are currently renting each unit out at $1800 each and it cashflows $1800 each month. Did this deal with my mom as my first investment property with her having 75% and I have 25%.

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

I became interested with buying rental properties back in 2016. More recently I have been on a heavy learning path and asking questions here and there to my mom who has been a real estate agent for about 20 years. She came to me with this deal trying to help me with my interest of real estate investing and I took the leap to land my first deal.

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

My mom has been the one finding the tenants to rent out each unit as the previous landlord lives in Florida. After 17 years of knowing her she finally wants to sell the property. My mom did most of the negotiation on this deal and I was just mostly shadowing trying to learn what I could.

How did you finance this deal?

We put 20% down with a DSCR loan.

How did you add value to the deal?

We increased the rent from $1200 to $1800 with the previous tenants. We also plan to renovate each unit when vacant to then increase the rent to $2200 each.

What was the outcome?

We have 3 tenants that decided to stay even with the rent increasing and the 1 tenant that was almost evicted is the one that will be leaving.

Lessons learned? Challenges?

A challenge that we encountered while trying to finance the deal is that we were searching hard for a lender that could have given us less than a 20% down payment but ended up needing to put the 20% as we were running out of time to search.