1st Investing Property Triplex in CT

[Jose Bernard]

This is my second purchase, as I have been house hacking in a two unit multifamily house for the last 8 years. However, I consider this my 1st real deal as an investor. The 1st purchase I bought my senior year in college and it just made financial sense at the time, but I at that time I didn't think of financial analysis, Cap Rates, cap ex, proper tenant screening, and every other aspect that makes an investor run their investment as a business and no a hobby. I have been lucky my tenant is a close friend and I have never had a tenant problem since I rented the unit. These are the reasons I don't consider that deal my first true investment deal. 

I work full time as a business consultant and  I have been working in sales for the last 7 years. This year I decided I wanted to start a real estate company and start investing. It has been several months since I started educating my self and joined Bigger Pockets. I closed on a 3 unit multifamily house September 16th. 

Here are the numbers on the deal: Cash on Cash Return 12%, Cap Rate 8%, Annual Cash Flow $5520.00

The house was a foreclosure. I'm currently working on the rehab. I will post before and after pictures once is all done. So far my best advice to anyone doing a rehab on an As Is Purchase for the first time is INCLUDE UNEXPECTED EXPENSES IN YOUR REHAB BUDGET! After getting in the house and turning on the water we discovered the plumbing had to be redone. Also, the main beam that supports the house had to be replace. If i didn't include a sufficient amount for unexpected expenses in my budget the deal could have gone from good to bad very quickly. Even though having the budget doesn't take the stress away from these expensive surprises, it helps to know the deal is still a good deal. 

I will add more info as we progress on the rehab and post pictures.