First Investment Purchased

[L Lehman]

Investment Info:

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

Purchase price: $180,000
Cash invested: $9,000

1980's duplex. Creative financing with a local bank - skipped some steps with the BRRR method, essentially utilizing a 6 month construction loan. The local bank loaned me 80% of the future valuation. That minus my initial purchase price gave me $50,000 in a savings account to draw from to pay contractors to fix up the home over the course of 9 months. Once completed, I refinanced and only put down 5%.

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

Mirroring myself after my parents' rental investment portfolio.

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

Door knocking and personal relationships. Being low maintenance and taking "as is."

How did you finance this deal?

Local bank and personal capital.

How did you add value to the deal?

Personal relationships, hiring the right contractors. Taking the time to research.

Lessons learned? Challenges?

Challenges were working within a historical society during modifications. Lessons learned: the home doesn't need to be "perfect" in order to make it an enjoyable and attractive place to live while cash flowing.

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

Yes.