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Updated over 1 year ago,
My First Deal As A Real Estate Investor
Investment Info:
Large multi-family (5+ units) buy & hold investment in Bridgewater.
Purchase price: $100,000
Cash invested: $23,000
Multifamily Investment Long Term Hold
What made you interested in investing in this type of deal?
Wanted to complete some renovations to learn pricing of materials, working with contractors learning how to place tenants basically the entire process so In turn leading me to find better deals.
How did you find this deal and how did you negotiate it?
Found it on the MLS people were going through a divorce and let the property go downhill.
How did you finance this deal?
Funded this deal threw a side hustle of selling tires and once I sold enough tires to put down 20%, I bought a deal.
How did you add value to the deal?
Renovating one unit at a time had some current tenants that stayed after purchace of the property and once their lease was up gave them some option on extending lease or moving.
What was the outcome?
I upped the rental income by from 1500 to 3300 in 14 months.
Lessons learned? Challenges?
Lesson Learned was vetting your tenants like they are going through a Mortgage Process. I would rather keep the property vacant another month or so instead of getting the wrong tenant. Most of all the people that have horror stories about tenants could have been avoided and was caused by their own self in flicking mistakes. Not all but most so my advice would be vet vet vet!!!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I had just got my license 1 month before I bought this first deal and structured the deal to where I put down 20% had buyer pay 2000 towards closing costs and then put the commission I made into reserves for the property as a cushion in case I needed it. I think it was listed for 125,000 talked them down to 100,000. I still have that same property today.