My First one In the books short and long story with pic

[Jon Sheffield]

Long story short on June 22, 2016 I finally closed on my first multi-unit property in South EastD.C. for my fellow Washingtonians it's in ward 8 near the st. elizabeth's campus. It was a very long process and I learned some good things along the way but also realized how much I didn't know. I have to occupy the building due to one of the programs I used, but at the end of the day out of pocket for a 418k property was $5,681.

Thanks to Tony Taylor (sorry couldn't figure out how to tag you tony) my realtor he's on bigger pockets look him on NOW, he really worked his tail off to get this deal done. If you are an experienced investor or first time Investor Tony is the man, I will explain why in more detail below.

Now For the long story, this is my story and process I went through for the multi-unit property:

I started my search back in October 2015 after dragging my feet for a very very long time how long you asksince 2007, Yikes. You can get very comfortable in a W2 job, anyway I digress back to the process. I did a general search and found a realtor; this realtor who shall remain nameless wasn’t bad but was average. When you are looking for a team do you want above average or just ok. The realtor contacted me on the phone told me there were no multi units on the market and would send me an email when some came on the market. If you are familiar with the DC market multi-units now are staying on the market less than 5 days. I didn’t know that at the time, so several weeks later when I received an email from the realtor with about three choices which weren’t even in my search criteria I was highly disappointed. Now this continued even after a phone call to the realtor that what he was sending didn’t fit my criteria.

So fast forward to the point where I met Tony Taylor the experience was night and day. I met tony in person we had a discussion about my criteria he told me about several programs I could use as a first time homebuyer to reduce my out of pocket cost, where we would be looking and why, how he would use direct mailing to reach owners off market to get a property under contract before hitting the MLS. The road was long and frustrating I put in about 15 bids on properties and was outbid most of the time the other times there were other issues with the seller. Now to the property that I have purchased tony found this investor from a house that he was renovating next to tony house and through his mighty investigation skills found out the investor was selling a building in my criteria. We saw the property I liked it tony explained the renovations that would occur in ward 8 and what was actually happening in that area at that very moment. Tony broke down the numbers explained my options and let me make my decision. We put in the contract and it was accepted, side note I found out later that someone I know put in a bid on this property. Their offer was way below what the owner purchased it for about three years ago. They were instructed by their realtor to do that, not a bad move if it's a buyers' market or if the building was a mess but neither scenario's applied here.

After the contract was accepted there was the home inspection which was about $550, appraisal which was about another $500, earnest money deposit at $5,000 and the purchase price set at 430k. Remember these are Washington D.C. numbers you area will vary, through home inspection and seller credits the purchase price came down to 418k. The major reason being the roof was past its life expectancy, but three of the four units were rehabbed. The home inspector couldn’t believe that the building was in such good shape, his exact words were the last couple of multi-units he inspected for purchase needed to be condemned and had no soul. There was a major hold up due to the loan officer which is a longer story, but on June 22, 2016 we closed the deal.

I have to occupy the building due to one of the programs I used, but at the end of the day out of pocket for a 418k property was $5,681. If I hadn’t received down payment assistance or seller credits towards closing which was negotiated by my realtor tony I would have had to come out of pocket with about 30k. That 30k includes down payment, closing cost and earnest money deposit. I have to pay $700 a month to ensure I have enough in reserve, although the rents cover mortage, insurance, taxes, home warranty, and 3% for repairs. This is was my experience I may have left something out just ask if you have questions. Thanks to everyone on bigger pockets and to Tony Taylor you guys rock.  That's tony on the right me on the left.