buy and hold

[Melissa Casey]

Investment Info:

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

Purchase price: $135,000
Cash invested: $25,000

I currently live in 1 unit and rent out the other 2, the house pays for itself, and my value doubled since having it.

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

I always wanted to be a landlord, I thought it would be so easy. Boy was I wrong! I've learned so much over the last 7 years that I am ready to do it again.

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

I was working as a teller at Citizens bank and our mortgage lender would come in monthly and I asked what I need to do to buy a house and she helped me during the whole process and had a realtor she worked with that helped me find the house and negotiate the terms.

How did you finance this deal?

I did the first-time home buyer's class which helped with the downpayment and the closing costs and got a traditional FHA loan.

How did you add value to the deal?

So here is the tricky part, being a first-time home buyer by myself was a struggle and the house had old windows that needed to be replaced. There are 32 windows in the house. I had some quotes that were like another mortgage payment so after searching I found that my city had a free home repair program, and I signed up. they replaced all my windows and most doors; they also fixed my foundation that was cracked in multiple places and a porch that needed repair.

What was the outcome?

I was granted $45,000 and half of it is forgivable after 15 years (5 years per unit). So now I have a lien on my house for $22,500 as of 2030. I owe $110,000 and the house is worth $450,000 and I can't get an equity line of credit due to the lien.

Lessons learned? Challenges?

don't get roped into free programs because nothing is free!