1st Real Estate Investment

[Account Closed]

Investment Info:

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

Purchase price: $520,000
Cash invested: $12,000

4 plex needing some TLC but cashflow positive on day one - covered the mortgage, taxes and utilities. I was able to negotiate to get full closing costs and all the health and safety repairs items in the inspection report. I financed with a FHA 3.5% down but also having my AK realty license meant I was able to put my 2.5% commission towards the down payment and only do a 1% down payment instead. Walked away with a 2.65% interest rate, overall very good deal.

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

This property was immediately cashflow positive

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

My real estate friend owned the property nextdoor

How did you finance this deal?

FHA

How did you add value to the deal?

Fixed one of the units, replaced fencing, etc.

Lessons learned? Challenges?

Dont wait to kick out bad tenants, keeping them around because they pay the rent will just give them more time to ruin a unit.

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

I am licensed real estate agent in Alaska but I did secure the FHA through Prime Lending.