Closed on our first MultiFamily!

[Account Closed]

It's official now. We have just recieved the keys to our first multifamily property near Portland, Oregon. Between my girlfriend and I, this is property #4. Since we are purchasing properties in our own names, this is #2 for me. I'm very excited to finally make that next step towards exponential growth in investing!

I would like to share some of the details of this win for us:

Location: Wood Village, Oregon (near Gresham/Troutdale/Portland)

Purchase Price: $235,000

Down: 15% (Required owner-occupy first year)

Interest Rate: 4.125% conventional

Projected NOI = (Starting year 2) $24,000

Cash Flow = $8,800

Cash-on-Cash return = 25.1%

CAP Rate = 10.2%

Total ROI = 48.3% (tax info not considered)

These are just preliminary numbers taking 10 minutes to calculate. Not looking too bad, huh?! This is why real estate completely demoralizes other types of investment strategies. An equal 25% return using other strategies is often much higher risk.

To be continued on the Somewhat Savvy Investor Chronicles...