My First Investment Property Has Been a Great Success

[Jody Kennedy]

Investment Info:

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

Purchase price: $155,000
Cash invested: $31,000

Completely renovated 4 family home with 2 car garage which rents out separately. All separate utilities paid by tenants. Solid, long-term tenants, one of which does the property maintenance for slight rent reduction.

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

This purchase was my first investment property and had a fantastic cash flow.

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

Spent months researching for the right area and property where the numbers would work and meet the financial goals I had set.
was working in real estate already so had access to to properties before or as soon as they were listed. It was priced under market value as it was a very motivated seller. Came in with a solid offer of asking price with a 12 hour decision to avoid a bidding war as I knew there was a lot of interest.

How did you finance this deal?

Took money from my 401k for down payment and renovations and used a conventional 30 year loan with 3.25% interest.

How did you add value to the deal?

20% down payment, fast close, inspection for informational purposes only shore of anything structural being reveled.

What was the outcome?

Offer accepted within 6 hours and fast close.

Lessons learned? Challenges?

Knew zero about investment props, property mang, landlord-lording, finding tenants, or rehab. Just dove in, researced my pants off, talked to everyone I could w/useful experience. Worked w/hired contractors to learn, then got my contractors lic. Initially rented based on my "gut" felling, getting me in trouble at times. Now, I manage & rent as strictly a business decision. Rents are auto deducted. I rehab beyond average & charge highest , great screening, better tenants & more $ :)

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

Unibank in MA was and continues to be great but I didn't need anything creative.