My first rental property!

[Qais Attarwala]

Investment Info:

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

Purchase price: $300,000
Cash invested: $10,500

My first investment. A house hack where I live in one unit and rent out the other.

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

I was interested in this property because of its proximity to downtown Cola. I knew it would be a great rental for students and traveling professionals and it came fully furnished! When both units are rented out the property should net cash flow around $1,000 a month.

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

I found it through my agent's search portal. I negotiated it by putting in an escalation clause in my offer since there were 8 other offers for the property. I also conducted several home inspections and used those to get $13,500 in seller concessions.

How did you finance this deal?

I financed it with an FHA loan with 3.5% down.

What was the outcome?

Bought the home, inherited a great tenant, and found a new tenant within 48 hours of the first tenant moving out.

Lessons learned? Challenges?

I learned that I probably should have put at least 20% down to avoid the mortgage PMI. I also learned that Furnished Finders is a great marketing site for mid-term rentals.

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

Lawrosa Hart - Realtor at The Tandem Group
Allen Marshall - Lender at The One Brokerage
Chad Horton - Home Inspector at On Point Home Inspection
Andrew Lucas - Fellow investor on BP
Will Gaston - Fellow investor on BP