Closed on my First MFR after Three Months

[Ryan Fisher]

Wow!  Pretty surreal to finally collect rent on our 4-unit apartment complex that we finally closed 3 months after we made our original offer.  This goes to show that sometimes finding deals and closing them are not always as cut and dry as some people make them out to be.

Every mistake that could be made was made by me, but I guess that is how you learn.

List of mistakes I made:

• Offering on a property when I was not even close to having the required down payment.
• Not having my investors lined up with me as I made an offer.
• Screwing up the negotiations and them leaving us out to dry because they were offended by our counteroffer.  (We were lucky the the people after us were not able to come up with financing so the deal fell back to us)
• Not realizing 4 unit properties require 25% down payment. (Or so I thought)

Even though making all of those mistakes, by taking action and learning as I went I was able to partner with my father and sister on this deal which allowed us to highly leverage ourselves and get into the property by only putting 5% down due to the fact my little sister is a 1st time home-buyer which allowed us to go with an FHA loan. Creative financing at its finest. I personally only had to come up with $6,000 to get this property, which is amazing considering the rents, and the amount of value we can add for the future

Here is my criteria of what I look for in my long-term hold property's:

• Low initial investment
• GRM of 8.
• $200/door 

Property #2, now getting ready for #3.  Where to look next?