The first true investment property

[Justin Albrecht]

Investment Info:

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

Purchase price: $125,000
Cash invested: $37,000

The first true investment property!

Fixer upper Duplex home that needed a complete gut job renovation.  I've been doing most of the renovations myself so it's been a slow process, but my sister has moved into the lower unit 2 days after closing and is covering a majority of the mortgage while helping me fix up the place. When I get both units completely renovated I'll be making twice as much as the mortgage + expenses. I expect to be fully rented by February 2024.

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

I wasn't planning on buying another investment property so soon, but this house came back on the market after a deal backed out. I called the realtor being more curious than serious. The house had tons of potential PLUS and extra lot included next door that added some security to the purchase. My sister moved in same weekend after closing and has covered 80% of the mortgage and helping with the smaller projects.

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

MLS, Zillow

How did you finance this deal?

person savings for the 20% down payment, Conventional 30yr fixed on the rest

How did you add value to the deal?

complete modern renovations of both units with the mindset to use property as a cash flowing rental.

What was the outcome?

currently in renovations stage still, but the minimal risk with sister moving in right away plus extra lot included in sale made this a low risk opportunity.

Lessons learned? Challenges?

contractors do not always have the experience they say do
Learning how to budget repair/rehab costs is difficult.
I need to start delegating smaller maintenance items