First out of state investment

[Gabriel Hidalgo]

Investment Info:

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

Purchase price: $65,000

This property was purchased for $65,000 and it was my first out of state deal. The property is a 6bed 2 bath duplex. Each side as a potential of renting for $1200.

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

I have always been interested in multifamily investments and the price point of the property, the income potential and the renovation cost all made sense.

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

In order to negotiate the deal, I used the inspection report to help me get a better price. In addition I also offered cash and a quick closing timeframe. The seller was aware of work needed and priced it accordingly but was willing to reduce the price point for an all cash deal.

How did you finance this deal?

This was a cash purchase.

How did you add value to the deal?

Property is currently under renovations. The property is being modernized with brand new floros, kitchens and bathroom, windows are being added.

Lessons learned? Challenges?

Working with and building a trustworthy team is of utmost importance. I have started small and out of state where I am entrusting people based on referrals. Working with contractors can be extremely difficult as projects get delayed and there is poor communication(red flags were not present before project began). Finding a property manager who will help you and is in your best interest is also important, the property manager can either make or break the investment.