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Updated about 1 year ago,
First out of state investment
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $120,000
Cash invested: $12,000
It's going to be tough to return to investing in my local state (CA) after seeing the return on this Wyoming property. Not a political statement but...red is a whole lot money-smart than investing in blue states. Overall, we are collecting $1,500/month in gross rents, mortgage is around $600/month, expenses are around $350/month, so the pure cash flow is around $550/month.
What made you interested in investing in this type of deal?
My wife is from this area, so the area was already on my radar. Like the area and truly believe it is going to be a steady area (no huge appreciation, but plenty of cash flow)
How did you find this deal and how did you negotiate it?
Made strong relationships with local agents, and really narrowed down to an agent that I got along with. He told me about this property that was going to hit the market in a few days. The numbers made sense for me to write a full-priced offer the minute it hit the market, and put it into contract my the afternoon.
How did you finance this deal?
Had about $5,000 of my own money, and borrowed (hard money) from an acquaintance that I trust. Could have paid him back his loan in a few months but chose to let the loan run about 6 months longer so that he could realize some interest; this was considered a long-play so I could continue to tap into his funds for future small hard money loans.
How did you add value to the deal?
Solved a few problems, removed a major tree that was causing issues to the power lines, replaced a roof, nothing major.
What was the outcome?
Still owning the property, and it has continued to bring in about $600/month in pure cash flow
Lessons learned? Challenges?
Learn about seasons haha. We closed escrow in Nov and winter was rough. Roof was delayed about 1.5 months.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
NA