Utilize FHA loans to buy your first rental

[Michael Kazalas]

Investment Info:

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

Purchase price: $167,000
Cash invested: $8,000

My wife and I bought a duplex in 2019 -- we got an FHA loan and negotiated the seller to pay $8k towards our closing costs. We lived there for 2 years while renting the other unit out to friends. We now hold it as a rental property that cashflows well with a 2.75% interest rate (got lucky with the rate environment at the time of purchase!)

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

I wanted to avoid paying rent while also keeping my monthly housing obligations as low as possible.

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

I connected with a real estate agent who had a large investor client who was looking to off-load some of his portfolio.

How did you finance this deal?

FHA loan

How did you add value to the deal?

I've been slowly updating -- new kitchen and bath in one unit, Fresh paint throughout, etc